According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage rates were volatile last week, with rates up for 30-year fixed-rate loans with conforming balances but down for jumbo loans, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The volatility contributed to decreasing refinance and purchase activity, which both fell from one week earlier. Inventory was also a factor and likely played a role in pushing demand for loans to buy homes lower. Joel Kan, MBA’s senior vice president and chief economist, says current conditions are particularly challenging for first-time buyers. “The average loan size for total purchase applications increased, indicating that first-time home buyers, who typically get smaller loans, are likely getting squeezed out of the market due to the lack of entry-level homes for sale,” Kan said. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
