According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week from the week before. Rates were down across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs.
Mike Fratantoni, MBA's senior vice president and chief economist, says rates are now at a three-month low. “The Federal Reserve raised its short-term rate target last week, but longer-term rates, including mortgage rates, declined for the week, with the 30-year conforming rate reaching … its lowest level since September,” he said.
Fratantoni believes mortgage rates will continue to trend downward, with buyers becoming more active during the second half of next year. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.
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