According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week. In fact, 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. The decline follows an increase the previous week but continues an overall downward trend so far this year. Average rates are now 69 basis points lower than they were last year at the same time. Despite favorable rates, though, refinance and purchase activity both fell from the week before. Joel Kan, MBA’s associate vice president of economic and industry forecasting, said refinance activity may have stalled because rates have been low for so long. “Refinances last week were 7 percent lower than last month,” Kan said. “This is an indication that as we see rates lower for longer, borrowers need more of a drop in rates to consider refinancing.” Demand for loans to buy homes was also down last week, though it remains 6 percent higher than one year ago. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.
Average Mortgage Rates Fall Again