According to the Mortgage Bankers Association’s Weekly Application Survey, the average mortgage rate for 30-year fixed-rate loans with conforming loan balances was virtually unchanged last week from one week earlier. Rates for loans backed by the Federal Housing Administration and 15-year fixed-rate loans both fell and jumbo loans and 5/1 ARMs increased. But despite an up-and-down week for mortgage rates, refinance demand spiked almost 8 percent higher than the week before and government refinances surged 24 percent. Joel Kan, MBA’s vice president and deputy chief economist, says buyers weren’t as active as homeowners. “Conventional purchase applications were down for the week, but there was a 5 percent increase in FHA purchase applications as prospective home buyers continue to seek lower down payment loans,” Kan said. “Overall, purchase applications continued to run ahead of 2024’s pace as broader housing inventory and affordability conditions improve gradually.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
