Mortgage Rates Fall For 2nd Straight Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage rates fell across all loan categories last week, including 30-year fixed-rate mortgages with conforming and jumbo balances, 15-year fixed-rate loans, and FHA-backed loans. It was the second consecutive week of declines. Mike Fratantoni, MBA’s chief economist, said rates on conforming loans hit 6-month lows and jumbo rates hit 12-month lows. Despite falling mortgage rates, however, the Market Composite Index – which measures total mortgage application demand – increased just 0.9 percent. Lower rates did boost refinance activity, pushing the Refinance Index up 4 percent from the week before. Demand for loans to buy homes, on the other hand, fell 3 percent from a week earlier. The refinance share of total mortgage activity increased to 52 percent from 50 the previous week. 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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