According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week from the week before. Rates moved higher for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Joel Kan, MBA’s vice president and chief economist, says the economy is resilient and it’s keeping rates higher. “Mortgage rates moved higher last week as several Federal Reserve officials reiterated a patient posture on rate cuts,” Kan said. “Inflation remains stubbornly above the Fed’s target, and the broader economy continues to show resiliency. Unexpectedly strong employment data released last week further added to the upward pressure on rates.” Despite higher rates, overall mortgage loan demand was virtually unchanged from the previous week due to a spike in refinance activity. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
