Mortgage Rates Continue Downward Trend

According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage rates declined across all loan categories last week, including 30-year and 15-year fixed rate loans with both conforming and jumbo balances, as well as FHA-backed mortgages. The decline continues a downward trend over the past several weeks, though rates did rise slightly the week before. Despite favorable interest rates, however, demand for mortgage applications fell slightly. In fact, the MBA’s Market Composite Index – which measures both purchase and refinance demand – slipped 1 percent from one week earlier and, individually, both the Purchase and Refinance indexes dropped 1 percent apiece. But following the previous week’s 9 percent plunge, the slight dip in overall mortgage demand is an improvement and one that can likely be attributed to downward trending mortgage rates. 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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