Mortgage Rates Move Higher For 2nd Straight Week
According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates moved higher for the second consecutive week last week. Rates were up across all loan categories, including 30-year fixed-rate mortgages, loans backed by the Federal Housing Administration, and 15-year loans. Joel Kan, an MBA economist, told CNBC that rates are being driven higher by economic conditions. “Rates moved higher last week driven by concerns over a weaker U.S. dollar, signs of more robust growth and rising rates abroad, and moderately strong fourth-quarter domestic growth,” Kan said. With rates rising, there was a decline in mortgage application demand. The number of homeowners looking to refinance and potential buyers requesting applications for loans to buy homes both saw a drop, with total demand falling 2.6 percent from the week before. However, mortgage rates still remain low by historical standards – though there is a belief that, with a strengthening economy, interest rates could rise further this year. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.