According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell again last week. Rates for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans all declined. It was the second straight week mortgage rates fell. They are now down 50 basis points from last month's peak.
Joel Kan, MBA's vice president and deputy chief economist, said the news was good for home buyers. “The decrease in mortgage rates should improve the purchasing power of prospective home buyers, who have been largely sidelined as mortgage rates have more than doubled in the past year,” Kan said. “As a result of the drop in mortgage rates, both purchase and refinance applications picked up slightly last week.”
Overall demand for mortgage applications was up 2.2 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.