According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell for the second straight week last week. Rates were down from the week before 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. As a result, demand for mortgage applications rose 3.4 percent. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now at a three-week low. “Mortgage rates declined for the second week in a row, with the 30-year fixed rate decreasing to … the lowest in three weeks,” Kan said. “The decline in rates gave borrowers some relief, with applications rebounding slightly, particularly conventional applications.” Still, both purchase and refinance activity are running well below last year’s pace. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
