According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell across all loan categories last week. Rates were down from one week earlier for 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 were more favorable week-over-week, demand for mortgage applications fell. Joel Kan, MBA’s vice president and deputy chief economist, says winter weather was likely behind the drop. “Application volume was down last week, led by a 14-percent drop in purchase applications,” Kan said. “Winter Storm Fern likely had an impact as much of the country was snowed in, hampering home buying activity.” The MBA’s Market Composite Index – which measures both purchase and refinance activity – fell 8.9 percent, as a result. Conducted since 1990, the MBA’s weekly survey covers 75 percent of all retail residential mortgage applications. (source)
