According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week from the week before. Rates were up across all loan categories, including 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. The increases led to a drop in demand for mortgage applications. Joel Kan, MBA’s vice president and deputy chief economist, says rates were at their highest level in weeks. “Mortgage rates increased to their highest level in three weeks as Treasury yields pushed higher on recent, stronger than expected economic data,” Kan said. “After the burst in refinancing activity over the past month, this reversal in mortgage rates led to a sizeable drop in refinance applications.” Despite the rate bump, demand for home purchase loans was down just 1 percent week-over-week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
