According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates moved higher again last week. Rates were up from the week before across all loan categories, including 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. As a result, demand for mortgage applications slowed week-over-week. Joel Kan, MBA’s vice president and deputy chief economist, says borrowers are turning to ARM loans to secure lower payments. “Mortgage applications decreased as rates moved higher last week,” Kan said. “The 30-year fixed-rate was … the highest rate since November 2023 and more than a percentage point higher than a year ago. As a result, borrowers continue to rely more on ARM loans to help lower their monthly payment.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
