According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for home purchase loans slowed 2 percent week-over-week last week as mortgage rates continued to climb. Rates were higher across most loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Joel Kan, MBA’s vice president and deputy chief economist, says buyers are hesitant and refinance activity has slowed. “Mortgage rates moved to their highest level in almost three years last week …” Kan said. “Very few homeowners have an incentive to refinance at these rates, and the jump in borrowing costs has caused many potential borrowers to step back from the purchase market.” Rates are now roughly a percentage point higher than last year at the same time. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
