The Mortgage Bankers Association Weekly Applications Survey indicates on average, rates for mortgage loans were pretty much flat last week. Rates for a 30-year fixed loans and 15-year fixed loans were down slightly. Jumbo Loans, however, were up a bit as compared to the previous week.
Even with favorable rates, mortgage application demand was down 9 percent, and application demand for houses for sale and condos for sale, which is a leading indicator of future home sales - dropped 4 percent. MBA’s chief economist, Michael Frantantoni explained to CNBC that a possibility for the drop in demand was in response to anticipated rate hikes by the Fed in September.
However, expectations now for a rate hike have been extended from September to later this year sometime in December. The reason for the extension according to Mr. Fratantoni is recent financial market volatility, growth concerns around the world and still-low US inflation.
The weekly survey conducted by the MBA begun in 1990 and covers 75 percent of all retail applications for residential real estate.