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, 15-year fixed-rate loans, and 5/1 ARMs. The decline brought rates to the lowest level in three weeks.
It also led to a spike in demand for mortgage applications, according to Joel Kan, MBA's vice president and deputy chief economist. “Mortgage rates declined across all loan types as Treasury yields moved lower last week on incoming inflation data, which helped to support a rise in mortgage applications,” Kan said. “Compared to a holiday-adjusted week, both purchase and refinance applications were up, and the increases were heavily driven by the conventional market.” The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.