According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates were down or unchanged for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Mike Fratantoni, MBA’s senior vice president and chief economist, says economic news led to the decline. “The economic news last week included a negative reading for first-quarter GDP growth and further signs of a contraction in the manufacturing sector, mixed with a solid employment report for April,” Fratantoni said. “The net impact on mortgage rates was mostly downward but just back to levels from early April.” As a result, conventional purchase application volume was up 13 percent week-over-week and 9 percent higher than last year at the same time. Overall, demand for mortgage loan applications increased 11 percent last week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
