Mortgage Rates Increase After Weeks Of Decline

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased across all loan categories last week. Rates were up from the week before for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Mike Fratantoni, MBA’s senior vice president and chief economist, says the rate increase was slightly unexpected. “Mortgage rates moved higher last week … even as the latest inflation data has kept market expectations alive for a rate cut from the Fed later this year,” Fratantoni said. “Purchase applications decreased the final full week of June, even as both new and existing inventories have increased over the past few 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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