According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates are now at their lowest level since February. Last week, rates fell across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The drop helped push mortgage application demand 16 percent higher than one week earlier, with refinance demand surging 20 percent week-over-week. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says low rates are helping buyers but demand continues to fluctuate. “Purchase applications increased last week, but average loan sizes decreased to their lowest level since January 2021,” Kan said. “We continue to see ebbs and flows as housing demand remains strong but for-sale inventory remains low. However, lower rates may be helping some home buyers close on their purchases, especially first-time home buyers.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
