According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively flat last week, with little movement seen across most 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. But while rates remain elevated and economic uncertainty continues to linger, home buyers have quietly pushed purchase demand higher. Mike Fratantoni, MBA’s senior vice president and chief economist, says demand for loans to buy homes is up from last year. “The news for the week was the growth in purchase applications, up 2.3 percent and almost 18 percent higher than last year’s pace,” Fratantoni said. “Despite the economic uncertainty, the increase in home inventory means there are additional properties to buy, unlike the last two years, and this supply is supporting more transactions.” Refinance activity is also up year-over-year, now 44 percent higher than it was the same week one year ago. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
