According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were a mixed bag last week. Rates for 30-year fixed-rate loans with conforming loan balances rose slightly, while loans with jumbo balances and those backed by the Federal Housing Administration were virtually unchanged. Rates for 15-year fixed-rate loans and 5/1 ARMs both saw week-over-week declines. Rate changes didn’t dampen demand for loans to buy homes, however, as buyers pushed application demand 3 percent higher than the week before. Joel Kan, MBA’s vice president and deputy chief economist, says buyer demand is higher than last year. “Purchase applications finished the week higher, driven by conventional purchase loans, and continue to run ahead of last year’s pace,” Kan said. Mortgage application demand for loans to buy homes is now 22 percent higher than it was at the same time last year. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
