Home Buyers Keep An Eye On Mortgage Rates

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week from one week earlier. Rates were up for 30-year fixed-rate loans with both conforming and jumbo balances,15-year fixed-rate loans, and 5/1 ARMs. The increase – the first in weeks – caused buyers to pause their plans, as home shoppers continue to watch mortgage rates closely. Joel Kan, MBA’s vice president and deputy chief economist, says rate volatility and low inventory slowed buyer activity last week. “Purchase applications decreased 5 percent to its slowest pace in a month, as buyers remain wary of this rate volatility, but also as for-sale inventory in many parts of the country remains scare,” Kan said. Overall, mortgage application demand was down 5.7 percent from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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