According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage rates were volatile last week, with rates up for 30-year fixed-rate loans with conforming balances but down for jumbo loans, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The volatility contributed to decreasing refinance and purchase activity, which both fell from one week earlier. Inventory was also a factor and likely played a role in pushing demand for loans to buy homes lower. Joel Kan, MBA’s senior vice president and chief economist, says current conditions are particularly challenging for first-time buyers. “The average loan size for total purchase applications increased, indicating that first-time home buyers, who typically get smaller loans, are likely getting squeezed out of the market due to the lack of entry-level homes for sale,” Kan said. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
Weekly Survey Finds Average Rates Up-And-Down
