According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates declined last week from one week earlier. It was the first decrease after five consecutive weeks of increases. Rates were down across most loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, 15-year fixed-rate loans, and 5/1 ARMs. Rates for loans backed by the Federal Housing Administration were unchanged week-over-week. Joel Kan, MBA’s vice president and deputy chief economist, says favorable rates spurred loan demand. “The reprieve in rates supported an increase in both purchase and refinance applications over the week, although the pace of applications has fallen below last year’s pace in recent weeks,” Kan said. Still, refinance activity was up 5 percent last week and demand for loans to buy home rose 2 percent from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
