Mortgage Rates Dip, So Does Demand

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According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates on 30-year fixed-rate loans with conforming loan balances fell again last week. Rates on jumbo loans were unchanged, while loans backed by the Federal Housing Administration increased. Mortgage rates on 15-year fixed-rate loans were down from the week before. Despite favorable interest rates, however, demand for mortgage loan applications fell from the previous week. In fact, the Market Composite Index – which measures both purchase and refinance activity – was down 4.3 percent, after a 4 percent drop in the Refinance Index and a 5 percent decline in the seasonally adjusted Purchase Index. The dip in demand follows a surge the week before, when total demand was up 4.9 percent. Also in the report, the refinance share of total mortgage activity increased to 63 percent from 61 percent the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.