Mortgage Rates Climb But Demand Remains Strong

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates rose slightly last week from one week earlier. Rates increased for 30-year fixed-rate loans with both conforming and jumbo balances as well as 15-year fixed-rate loans. Rates for mortgages backed by the Federal Housing Administration were unchanged from the week before. Joel Kan, MBA's associate vice president of economic and industry forecasting, says the increases slowed demand week-over-week, though it remains strong compared to the same time last year. “Home buyer demand remains strong this fall, but purchase applications did decrease 2 percent, with both conventional and government purchase activity taking a step back,” Kan said. “Given the ongoing housing market recovery and low rate environment, both purchase and refinance applications remained robust compared to a year ago, rising 26 percent and 74 percent, respectively.” The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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