According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates for 30-year fixed-rate loans with conforming balances fell last week from the week before. Rates for jumbo loans, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans each saw small increases. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says rates may be stabilizing, which would be good news for buyers. “Weakening purchase applications trends in recent months have been consistent with data showing a slowdown in sales for newly constructed homes and existing homes,” Kan said. “A potential silver lining for the housing market is that stabilizing mortgage rates and increases in for-sale inventory may bring some buyers back to the market during the second half of the year.” Right now, buyers remain cautious. The MBA’s purchase index – which measures demand for home purchase loans – fell 1 percent week over week and is now 18 percent lower than last year at the same time. (source)
