According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week 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. The declines led to an increase in loan demand, as refinance activity rose 5 percent from the week before and pushed overall application demand 1.8 percent higher week-over-week. Joel Kan, MBA’s vice president and deputy chief economist, says rates were at their lowest level in a month. “Given the evolving situation in the Middle East and its impact on energy and commodity prices, mortgage rates declined last week,” Kan said. “The 30-year fixed rate decreased to … its lowest level in a month. This dip in rates helped to support an increase in conventional refinance applications, which had declined for five consecutive weeks.” The MBA’s weekly survey covers 75 percent of all retail residential mortgage applications and has been conducted since 1990. (source)
