According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week across all loan categories, 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. As a result, home purchase activity slowed, dropping 1 percent from the week before. Demand for home purchase loans is now 21 percent lower than last year at the same time. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says last week’s numbers may indicate a shift in who’s buying right now. “Last week’s purchase results varied, with conventional applications declining 2 percent and government applications increasing 4 percent, which is potentially a sign of more first-time home buyer activity,” Kan said. “The average purchase loan size continued to trend lower, as purchase activity at the high end of the market is weakening.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
