According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, 15-year fixed-rate loans, loans backed by the Federal Housing Administration, and 5/1 ARMs.
Joel Kan, MBA’s vice president and chief economist, says the decline brought rates to a nearly three-and-a-half-year low. “Mortgage rates followed Treasury yields lower last week, with the 30-year fixed rate declining to … its lowest level since September 2022,” Kan said. “The decrease in rates was enough to drive a 5 percent increase in conventional refinance applications and a 26 percent increase in VA refinances.”
It wasn’t, however, enough to move demand for home-purchase loans, which fell 5 percent week-over-week despite favorable rates. Still, purchase application demand remains 12 percent higher than last year at the same time due to improved affordability conditions. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.
[Source: Mortgage Bankers Association]
