Average Mortgage Rates Down From Week Before

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were down across all loan categories last week, 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 decline provided a brief break from interest rates’ otherwise upward trend. Joel Kan, an MBA economist, told CNBC the slight drop in rates was driven by concerns about the global economy. “Mortgage rates dipped slightly last week driven mainly by concerns about global growth,” Kan said. “The refinance index continued to slip and was at its lowest since 2008, as was the refinance share of applications.” Refinance activity has fallen as rates have moved higher. This is to be expected as refinance demand is generally more sensitive to fluctuations in rates. Demand for loans to buy homes, on the other hand, remains 3 percent higher than at the same time last year. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

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