According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly flat last week with slight increases 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. But while rates didn’t move dramatically, they did remain at an elevated level, which subdued demand for mortgage applications. Week-over-week, refinance activity was down 2 percent while demand for loans to buy homes was virtually unchanged. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now at their highest level in three weeks. “Mortgage rates reached their highest level in three weeks, with the 30-year fixed rate up slightly …” Kan said. “Mortgage rates have increased around 20 basis points over the past two months, which has dampened refinancing activity.” Similarly, demand for loans to buy homes is now 5 percent lower than 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)
