Mortgage Rates Rise To Highest Point Since July
According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates were up last week, with increases seen across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The increase was driven by economic speculation and a stronger global economy, according to Joel Kan, an MBA economist. “Rates increased last week as speculation over the next Fed chair continued, and the European Central Bank announced plans to taper its asset purchase program, signaling increased confidence in the euro zone economies,” Kan told CNBC. In short, as economic confidence rises, so will interest rates. Still, despite higher rates, demand for home purchase loans remains 10 percent higher than it was at the same time last year – though it did fall from one week earlier. Refinance activity was also down from the week before. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.