Mortgage Rates are Mixed, but Demand is Rising

According to the Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances was unchanged last week from the week before. Mortgage rates on 30-year loans with jumbo balances and those backed by the Federal Housing Administration fell slightly, while the average rate on 15-year fixed-rate loans was up. With rates mostly flat from the week before, demand for mortgage applications increased 2.4 percent. The increase was the first in many weeks and was largely due to a bump in refinance activity. In fact, the Refinance Index rose 4 percent and, as a share of total mortgage activity, refinance demand accounted for 54.4 percent of all applications. The Purchase Index, on the other hand, only gained 0.3 percent from one week earlier. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.

Michael Rosenbaum

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s