According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates eased last week for the first time in more than two months. Rates were down 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. Joel Kan, MBA’s vice president and deputy chief economist, says the improvement wasn’t enough to spur hesitant borrowers. “Mortgage rates decreased for the first time in over two months,” Kan said. “However, lower rates were not enough to boost application activity, as both purchase and refinance applications continued to decline.” Demand for home purchase loans fell 7 percent week-over-week, while refinance activity was 2 percent lower than the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
