According to the Mortgage Bankers Association’s most recent Weekly Applications Survey, average mortgage rates fell for the fourth time in five weeks last week. Rates were down from the week before for 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 associate vice president of economic and industry forecasting, says there are a few factors behind the decline. “Mortgage rates fell for the fourth time in five weeks, as concerns of weaker economic growth and the recent stock market sell-off drove Treasury yields lower,” Kan said. Lower rates didn’t boost buyer demand, though. In fact, demand for loans to buy homes fell 1 percent from the week before and is now 14 percent lower than last year at the same time. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

These days, it seems like most housing market forecasts are predicting home price increases will begin to slow at some point this year. Whether it’s due to improving inventory levels as the number of homes for sale rises or from slower demand due to higher mortgage rates, most industry outlooks say the price spikes of the past couple of years will soon fade. But when exactly? “Those of us who have been anticipating a deceleration in the growth rate of U.S. home prices will have to wait at least a month longer,” says Craig J. Lazzara, managing director at S&P Dow Jones Indices. “Although one can safely predict that price gains will begin to decelerate, the timing of the deceleration is a more difficult call.” According to S&P’s most recent home price index, which covers data through the end of March, home prices continued to increase at a record-breaking pace as the spring season began. In fact, year-over-year numbers show price increases actually accelerated from the previous month’s report. But despite the first-quarter increases, market fundamentals still point to a better balanced market in the months ahead, with prices moderating as levels of supply and demand become more in line. (source)