Mortgage Rates Hit Another Record Low
According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell to another record low last week, with rates declining for 30-year fixed-rate loans with conforming balances, jumbo loans, and 15-year fixed-rate loans. Rates for mortgages backed by the Federal Housing Administration were flat from one week earlier. But despite favorable rates, demand for mortgage applications still fell 5.1 percent from the week before. Joel Kan, MBA's associate vice president of economic and industry forecasting, says demand remains strong. “Purchase applications also fell slightly, but were still 20 percent higher than a year ago and have now risen year-over-year for 11 straight weeks,” Kan said. “Purchase loan balances continued to climb, which is perhaps a sign that the still-weak job market and tighter credit for government loans are constraining some first-time home buyers.” The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.