Buyers Respond As Rates Continue To Fall

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 mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The decline means rates remain near three-year lows. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says falling rates led to a spike in demand for home purchase loans. “Purchase activity was 9 percent higher than last year, continuing the trend of solid year-over-year gains,” Kan said. Buyers may be responding to falling mortgage rates or trying to wrap up their home search before the summer season comes to a close. But, whatever their motivation, they definitely returned to the market last week. In fact, the MBA’s Purchase Index shows the number of Americans requesting applications for loans to buy homes was up 5 percent week-over-week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

About the Author
Bobby is a U. S. Marine Corps Veteran and Florida native with over 15 years of combined, award-winning experience in Real Estate and Mortgage Lending in Central Florida. Formerly served as a REALTOR with RE/MAX Properties SW, where he earned induction as a RE/MAX Hall of Fame Member and a consistent Platinum Club Award Winner. Locally, a multi-year Gold Level Award Top Producer within the Orlando Regional Realtors Association (ORRA). His consistent productivity has earned him universal recognition, named as a Top agent in numerous publications, year after year.