Rates for 30-year fixed-rate mortgages, conforming and jumbo loans and FHA loans were down last week as compared to the previous week according to the Mortgage Bankers Association® Weekly Survey. Rates are currently at a new low level since spring of this year.
The drop in rates as well as continued volatility as a result of industry regulations newly implemented caused a jump in demand for mortgages for residential homes for sale and condos and townhouses for sale. The seasonally revised purchase index was up 16 percent from one week ago and activity with refinancing loans was up 9 percent.
Mike Fratantoni, MBA’s chief economist said “On an adjusted basis, application volume increased last week, led by a sharp rebound in government volume. We expect that application volume will remain volatile over the next few weeks as the industry continues to implement TILA-RESPA integrated disclosures.”
The jump in applications for loans which signals future home sales, forecasts buying demand up 9 percent from the same week last year. The MBA has been conducting their weekly survey since 1990 and encompasses 75 percent of all applications for residential loans.