According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates remained elevated last week, with little movement seen for 30-year fixed-rate loans with both conforming and jumbo balances. Rates for loans backed by the Federal Housing Administration and 15-year fixed-rate loans saw declines. But while mortgage rates saw little change week-over-week, demand for loan applications surged. Refinance activity was up 16 percent and demand for loans to buy homes increased 10 percent from the week before. Joel Kan, MBA’s vice president and deputy chief economist, says home buyers are taking advantage of the increased inventory of homes for sale. “Coming out of the Memorial Day holiday, mortgage applications increased to the highest level in over a month, driven by growth in both purchase and refinance applications,” Kan said. “Purchase applications were 20 percent ahead of last year’s pace, continuing to show strength compared to a year ago. Despite ongoing uncertainty surrounding the economy, home buyers seem to be taking advantage of loosening housing inventory in certain markets.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
