Mortgage Rates Fall To 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 down for 30-year fixed-rate loans with both conforming and jumbo balances. Rates for loans backed by the Federal Housing Administration was up from the week before. But despite favorable rates, demand for mortgage applications dropped 1.8 percent. Joel Kan, MBA's associate vice president of economic and industry forecasting, said it was the second consecutive week purchase application demand declined. “After two months of strong growth, purchase applications declined for the second week in a row,” Kan said. “The weakening in activity is potentially a signal that pent-up demand is starting to wane and that low housing supply is limiting prospective buyers' options.” But while demand was down week-over-week, refinance and purchase activity are both still up from last year. In fact, refinance demand is 74 percent higher than year-ago levels, while demand for loans to buy homes is up 15 percent. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.