Mortgage Demand Slips Even As Rates Fall
According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell sharply 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. But though rates were more favorable, requests for mortgage loan applications still fell. In fact, overall demand was down 2.5 percent from the previous week. Joel Kan, MBA's associate vice president of industry surveys and forecasts, says, though demand for loans to buy homes dropped, the outlook remains good. "Despite more favorable borrowing costs, and after a three-week surge in activity, purchase applications have slowed over the past two weeks, and are now almost 2 percent lower than a year ago," Kan said. "However, moderating price gains and the strong job market, including evidence of faster wage growth, should help purchase growth going forward." The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.