According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased for 30-year fixed-rate loans with conforming loan balances last week, moving higher than the week before along with rates for loans backed by the Federal Housing Administration, and 5/1 ARMs. But while rates moved higher week-over-week, MBA’s senior vice president and chief economist, Mike Fratantoni, says demand from home buyers still rose. “Mortgage rates reached another high point last week, with the 30-year conforming rate now at … its highest level since last August,” Fratantoni said. “However, purchase volume increased modestly for the week. Growing home inventory in many markets is supporting more purchase activity.” In fact, demand for home-purchase loan applications was up 6 percent last week from one week earlier. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
