Key Highlights
- Mortgage rates dipped to 3.0% from 3.01% last week
- Mortgage application volume declined -0.7% for the week, according to Mortgage Bankers Association (MBA)
When mortgage rates fall even slightly, the number of mortgage applications usually increases. Not so, last week.
The average mortgage rate for a 30-year fixed rate mortgage fell to 3% from 3.01% last week. Points also decreased to 0.32 from 0.37 (origination fee included) for home loans with a 20% down payment. Simultaneously, the volume of mortgage applications dropped -0.7%, according to the Mortgage Bankers Association (MBA).
Refinance applications, the most sensitive to weekly interest rate fluctuations, declined -0.3% last week but were still a very comfortable +44% higher than last year at this time. (Earlier this year, refinance applications were some +100% higher than last year at this time.)
Purchase applications dropped -2% for the week but were +24% higher than last year at this time due to strong demand.
“Applications for government mortgages offset some of the overall decline (for purchase mortgages) by increasing +3%, driven by a solid gain in government purchase applications and an +11% jump in VA refinance applications,” said Joel Kan, associate vice president of economic and industry forecasting with the MBA. Kan added, “Housing supply is a challenge for many aspiring buyers, but activity should continue to stay strong the rest of the year.”
Thanks to Mortgage Bankers Association and CNBC.
Also read: A “V-Shaped” Economic Recovery for the Housing Market?, Mixed Reviews for Housing Market, Where Are Homeowners Refinancing the Most & Least?
