According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates increased last week from one week earlier. Rates were up across most loan categories, including 30-year fixed-rate loans with conforming loan balances, 15-year fixed-rate loans, loans backed by the Federal Housing Administration, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says the increases led to a drop in mortgage demand. “Mortgage rates increased for the first time in a month, and as expected, refinance applications fell by 16 percent. The 30-year fixed rate was the highest in three weeks,” Kan said. The rate increase also led to a drop in purchase demand, which fell 5 percent week-over-week, though it remains 18 percent higher than the same week one year ago. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
