Late Week Drop Drives Mortgage Rates Lower

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week 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. Most of the decline, however, happened later in the week – which helps explain why refinance activity, despite lower rates, still fell from one week earlier. Purchase loan demand, on the other hand, showed a slight week-over-week increase. Joel Kan, MBA's vice president of economic and industry forecasting, said the average loan size has fallen over the past few months. “The average loan size on a purchase application edged down to $407,000, below the record $418,000 set in February, but is still far above 2020's average of $353,900,” Kan said. “Home-price growth continues to accelerate, driven by favorable demographics, the recovering job market and economy, and housing demand far outpacing supply.” The MBA's weekly survey has been conducted weekly since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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