Mortgage Rates Move Up Slightly, Demand Slows Down
According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates rose slightly last week across all loan categories, including 30-year fixed rate loans with both conforming and jumbo balances, 15 year fixed-rate loans, and mortgages backed by the Federal Housing Administration. But despite rates remaining low and relatively flat from the week before, mortgage application demand fell 3.6 percent. The drop in demand was largely due to an 8 percent decline in the seasonally adjusted Purchase Index, which is a future-indicator of home sales. And, though any significant decrease in purchase activity can be concerning, industry experts say the dip in application demand for loans to buy homes could have more to do with the July 4th holiday than it does with home sales trending downward. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.
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