File photo: “For Sale” sign.
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Consumers appear unaffected by the recent decline in mortgage interest rates. Total mortgage application volume rose just 0.9% from the previous week, according to the seasonally adjusted Mortgage Bankers Association index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) fell to 6.94% from 7.02%, with points falling to 0.61 from 0.65 (including origination fees) for low-interest loans. By 20%. Premium. This is the lowest level since March.
“Mortgage rates fell last week following the recent inflation data and the FOMC meeting,” said Mike Fratantoni, MBA senior vice president and chief economist.
Despite this decline, refinancing demand, which is typically sensitive to weekly interest rate movements, fell 0.4% during the week but was 30% higher than the same week one year ago. Prices are still slightly higher than a year ago.
Home mortgage applications rose 2% during the week and were 12% lower than the same week a year ago. Home sales have slowed recently amid volatile interest rates. The supply of homes for sale is as expensive as it is poor.
“Purchasing volume is still more than 10 percent below last year’s pace, but MBA expects a rebound in home sales over the remainder of the year as more inventory hits the market,” Fratantoni added.
Mortgage rates rose slightly to start this week but then fell on Tuesday after weaker-than-expected retail sales data.
“All in all, it painted a less rosy picture for the American consumer than it did a few months ago,” Matthew Graham, chief operating officer of Mortgage News Daily, wrote.
