Rates Fall To Lowest Level In Nearly A Year

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates for 30-year fixed-rate mortgages with conforming and jumbo balances fell to their lowest level since June of last year. FHA-backed loans also posted their lowest mortgage rates in nearly a year. The drop continues a recent trend, which has seen mortgage rates falling for most of the past month. Despite favorable rates, however, demand for mortgage applications remained relatively flat last week, with the Market Composite Index – which measures both refinance and purchase demand – falling 1.2 percent. Both the Refinance and Purchase Index were 1 percent below the previous week. The refinance share of total mortgage activity was also flat, holding at 52 percent. Experts expect refinance demand – which spiked when mortgage rates dropped to record lows – to cool this year, as the mortgage market becomes driven by people buying homes rather than homeowners refinancing their loans. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgages. More here.

Michael Rosenbaum

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