Mortgage Rates Hit 14-Month Low

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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 fell to its lowest level since June 2013 last week. But despite favorable rates, mortgage application demand was relatively flat, rising just 0.2 percent. Purchase demand was down slightly, while refinance activity increased 1 percent from the previous week due, in part, to mortgage rates that continue to hover near historic lows. Refinance demand – which has been trending upward while rates remain low – now represents 57 percent of total application demand, the highest it’s been since March. Not all loan categories saw interest rates drop, however. In fact, average mortgage rates rose slightly on loans backed by the Federal Housing Administration and on 15-year fixed-rate mortgages. Mortgage rates on jumbo loans were unchanged from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgages. More here.

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