According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were up across most loan categories last week from the week before. Rates rose for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Mike Fratantoni, MBA’s senior vice president and chief economist, says financial markets were responding to turmoil in the Middle East. “Financial markets were volatile last week amid the ongoing turmoil in the Middle East. Mortgage rates increased on net over the week, while refinance volume was roughly flat,” Fratantoni said. “Purchase activity increased last week, particularly for FHA loans, which moved up more than 11 percent.” Total demand for mortgage loan applications was up 3.2 percent week-over-week, largely due to a 7.8 percent increase in home buyer demand for loans to buy homes. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
