According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week for the first time in 12 weeks. Rates were down for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans.
Joel Kan, MBA's associate vice president of economic and industry forecasting, says the decline was caused by the invasion of Ukraine. “Mortgage rates dropped for the first time in 12 weeks, as the war in Ukraine spurred an investor flight to quality, which pushed U.S. Treasury yields lower,” Kan said. “Looking ahead, the potential for higher inflation amidst disruptions in oil and other commodity flows will likely lead to a period of volatility in rates as these effects work against each other.”
Lower rates helped push demand for mortgage applications higher than the week before, with significant increases seen in both refinance and purchase activity. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.
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