Mortgage rates fell last week and are now at their lowest level since May 2013, according to the Mortgage Bankers Association’s Weekly Applications Survey. The MBA’s survey, conducted weekly since 1990, found rates down across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, mortgages backed by the Federal Housing Administration, and 15-year fixed-rate loans. In response to favorable rates, demand for mortgage applications rose. In fact, the MBA’s Market Composite Index – which measures both refinance and purchase demand – was up 1.3 percent over the week before. Lynn Fisher, MBA’s vice president of research and economics, said after several weeks of elevated refinance activity due to falling interest rates, FHA refinance applications spiked 76.5 percent in response to the reduction in annual mortgage insurance premiums that took effect on January 26. FHA purchase applications also spiked last week, rising 12.4 percent over the previous week. The MBA’s survey covers 75 percent of all retail residential mortgage applications. More here.