Mortgage Demand Slows With Latest Rate Bump

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week from one week earlier. Rates were up across most loan categories, including 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Jumbo loans saw a slight decline. Joel Kan, MBA’s vice president and deputy chief economist, says the increases slowed demand for mortgage applications week-over-week. “Mortgage rates edged higher last week … leading to another decline in overall applications,” Kan said. “The decline in purchase activity was driven mainly by weaker conventional purchase application volume, as limited housing inventory and rates … are crimping affordability for many potential home buyers.” Overall, mortgage application demand – including purchase and refinance activity – was down 3 percent from one week earlier. 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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