Mortgage Rates Fall To Lowest Level In A Year
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. The drop brought rates to their lowest level since this time last year. Joel Kan, MBA's associate vice president of economic and industry forecasting, said the decline was driven by concern over global economic growth. “Mortgage rates declined once again, as concerns about the slowing global economy and status of Brexit continued to drive investors' demand for U.S. Treasuries, ultimately pushing yields lower,” Kan said. “Rates for most loan types were at their lowest levels in over a year, with the 30-year fixed mortgage rate falling to…its lowest reading since last February. Although lower rates sparked a 3.5 percent increase in refinance applications, purchase activity was up only slightly last week and from a year ago.” The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.