Mortgage Rate Drop Pushes Demand Higher
According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell again last week, with rates dropping for 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 a long-term downward trend that has pushed rates 115 basis points lower than they were at the same time last year. That's led to a significant bump in mortgage demand. Joel Kan, MBA's associate vice president of economic and industry forecasting, says, though this week's year-over-year comparison may be skewed, this year has been the best in over a decade. “The annual increase in refinance and purchase activity was even more prominent in this report because Thanksgiving was a week earlier last year,” Kan said. “However, with roughly five weeks of reporting data left in 2019, the mortgage market is on track for its best year for originations since 2007.” The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.