According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates fell again last week, with rates for 30-year fixed-rate loans with both conforming and jumbo balances and loans backed by the Federal Housing Administration down from the week before. Rates for 15-year fixed-rate loans increased week-over-week and 5/1 ARMs were unchanged. Joel Kan, MBA’s vice president and deputy chief economist, says mortgage demand has picked up as rates have become more favorable. “Purchase applications increased more than 3 percent over the week and are inching closer to last year’s levels, with government purchase applications leading the increase,” Kan said. “Refinance applications were slightly down but continued to show strong annual gains as borrowers with higher rates have been refinancing to lower their monthly payments.” Overall, demand for mortgage applications was 1.3 percent higher week-over-week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)