According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were up and down last week but ended the week relatively flat across most 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. Mike Fratantoni, MBA’s senior vice president and chief economist, says reactionary rates made borrowers hesitant. “Last week’s CPI data showed that inflation continued to move higher, putting upward pressure on rates early in the week, but growing optimism regarding the opening of the Strait of Hormuz brought rates down again by the end of the week,” Fratantoni said. The result was a 3-percent drop in purchase loan activity and a 5-percent decline in refinance application demand. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
