The Mortgage Bankers Association (MBA) Weekly Applications Survey shows average rates for all types of loans to purchase residential homes for sale and condos and townhomes for sale inched up last week including 30-year fixed rate loans, FHA loans and 15-year fixed rate mortgages.
This marks the 2nd week in a row for rate increases. The rise in rates caused demand for loans to fall below the previous week level. In addition, the Market Composite Index - which looks at purchase and refinance activity dropped 08 percent from one week ago, with Purchase and Refinance Index signaling a 1 percent decline.
However, even with the drop in activity, loans to purchase houses for sale and condominiums for sale was still 20 percent more that same period just one year ago. This gain reflects an important increase in sales over the last 12 months. As demand activity for loans is a significant gauge of future demand for properties, any upward trent in the amount of purchase loans will also result in an increase in sales.
The MBA has administered the weekly survey since 1990 and takes into account 75 percent of all mortgage applications for residential purchases.