According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively unchanged last week from one week earlier. Slight declines were seen for 30-year fixed-rate mortgages with jumbo balances, loans backed by the Federal Housing Administration, and 5/1 ARMs. Rates for 30-year fixed-rate loans with conforming balances were flat and rates for 15-year fixed-rate loans increased. With rates mostly unchanged, so was demand. The MBA’s Market Composite Index – which measures both refinance and purchase activity – was 0.3 percent lower than the week before. Joel Kan, MBA’s vice president and deputy chief economist, says results depended on where you looked. “Mortgage applications were relatively flat over the week, but it was a mixed bag for the different loan types,” Kan sais. “The 30-year fixed rate was unchanged … and conventional applications declined for both purchases and refinances as borrowers held out for another drop in rates or shifted to other loan types.” According to Kan, borrowers are increasingly using FHA loans to battle affordability challenges. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
