According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week for the first time in two months. Rates were down across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans.
Joel Kan, MBA's vice president and deputy chief economist, says home buyer activity rose as a result. “Purchase activity drove overall applications higher last week, as conventional purchase applications picked up pace and mortgage rates declined for the first time in over two months …,” Kan said. “With the growth in for-sale inventory and signs that the economy remains strong, buyers have remained in the market even though rates have increased recently.” The MBA's Purchase Index increased 12 percent last week from the week before, helping to push overall mortgage application demand 6.3 percent higher week-over-week.
[Source: MBA]
