According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week, with rates rising 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. The increases led to a drop in demand for loans. Both refinance and purchase activity fell week-over-week. Joel Kan, MBA’s vice president and deputy chief economist, says buyers pulled back. “Overall applications were down to the lowest level in five weeks, as purchase borrowers pulled back across conventional and government loan types,” Kan said. “Refinance applications were essentially unchanged, with a decline in government refinances and an increase in conventional refinancing, likely as the increase in rates came late in the week.” The MBA’s weekly survey covers 75 percent of all retail residential mortgage applications and has been conducted since 1990. (source)
