Mortgage Rates Hit Another Low

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates hit another low last week. Rates were down week-over-week for most loan categories, including 30-year fixed-rate loans with conforming and jumbo balances and 15-year fixed-rate loans. The declines helped push demand for home purchase loans higher. In fact, requests for loan applications to buy homes rose another 5 percent from last week and are now 18 percent higher than they were at the same time last year. Joel Kan, MBA's associate vice president of economic and industry forecasting, says the numbers are encouraging but challenges remain. “Purchase applications continued their recent ascent, increasing 5 percent last week and 18 percent compared to a year ago. The pent-up demand from home buyers returning to the market continues to support a recovery from the weekly declines observed earlier this spring,” Kan said. “However, there are still many households affected by the widespread job losses and current economic downturn. High unemployment and low housing supply may restrain a more meaningful rebound in purchase applications in the coming months.” The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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