Mortgage Rates Fall To 16-Month Low

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week, dropping for the third-consecutive week and hitting their lowest level since June 2013. Mortgage rates were down across all loan categories but 30-year fixed-rate loans with conforming loan balances and mortgages backed by the Federal Housing Administration saw the most significant declines. Michael Fratantoni, MBA’s chief economist, said growing concerns about weak economic growth in Europe likely caused the sharp drop in interest rates. Refinance activity benefited from the drop, though, climbing 11 percent from the week before. Demand for applications for loans to buy homes also rose, increasing 1 percent from one week earlier. Altogether, total mortgage loan application volume was up 5.6 percent for the week. The MBA’s weekly survey has been conducted since 1990 and covers more than 75 percent of all U.S. retail residential mortgage applications. More here.

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