The latest Mortgage Bankers Association’s Weekly Application Survey shows the average 30-year fixed rate mortgage and FHA loans for purchases of homes for sale and condos for sale remain unchanged last week as compared to the week before. Jumbo loans and 15-year fixed mortgages both dropped during a volatile week where the Federal Reserve decided against raising rates.
Mike Fratantoni, MBA’s chief economist said, “We saw significant rate volatility last week surrounding the FOMC meeting, and rate declines toward the end of the week likely drove applications from both prospective home buyers and borrowers looking to refinance.”
He went on to say, “The 30-year fixed-rate remained unchanged over the week even though there was substantial intra-week fluctuation, but we saw rate decreases in other loan products like the 15-year fixed, 5/1 ARM, and 30-year jumbo.”
Wavering rates resulted in an application demand surge, with mortgage refinance up 18 percent from the week before. Purchase demand - which is a reliable indicator of future home sales, was also up 9 percent achieving a level not reached since June.
The MBA has administered the weekly survey since 1990 and takes into account 75 percent of all mortgage applications for residential purchases. Read more here...