Average Mortgage Rates Declined Last Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell across all loan categories last week, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. But despite the decline in rates, demand for mortgage applications was down from the previous week and is now about even with where it was last year at this time. There are a number of reasons why this might be. First, a competitive spring market means buyers in some markets may be interested in purchasing a home but having a hard time finding one they want. Secondly, recent economic news and stock market volatility may have caused some potential buyers to temporarily halt their plans to buy. Finally, some of the drop in overall mortgage demand reflects the fact that fewer homeowners are refinancing their loans, since mortgage rates have recently risen from historic lows. 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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