Homes for sale at 377 Capron Ash Loop in Casselberry on Wednesday, August 14, 2024.
Stephen M. Dowell | Orlando Sentinel | Forum News Service | Getty Images
Mortgage rates fell again last week, reaching a minimum level in two months, but were not responding to demand for mortgages. Total mortgage applications fell 1.2% from last week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract rate for a 30-year fixed-rate mortgage (compliant with the loan balance ($766,550 or less)) dropped from 6.93% to 6.88%, points dropped from 0.66 to 0.61 (including the original fee), and loans were 20%. Pay.
“As consumers feel less about the economy and job market, the yields in the treasury have lowered consumer spending data. This has driven lower mortgage rates, with a 30-year fixed rate lowered to 6.88%, which has been since December Joel Kan, vice president and deputy chief economist at MBA, said the lowest rate since mid-month.
Refinancing applications, home loans have been surging sharply in January and early February, down 4% this week, but 45% higher than the same week a year ago. Last year, mortgage rates have risen by 16 basis points.
“Although overall refinancing application activity remains fairly weak, FHA refinancing application has increased by 8% over the week,” Kan added.
Applying for mortgage purchases for homes is flat for a week, 3% higher than the same week a year ago. The sales market is more supply, partly because the homes are on the market longer. However, while there are more options, the prices are not much, as inventory remains historically low.
Mortgage rates begin this week, according to another survey by Mortgage News Daily. The average maximum mortgage rate has dropped by 0.22% over the past 4 business days. This doesn’t seem to be much, but the rates for the past month have moved in a very narrow range.
“Long story short, bonds are currently in fashion,” wrote Matthew Graham, chief operating officer of Mortgage News Daily, noting that interest rates fall when demand rises. “The broadest and most common explanations related to a downshift of global economic growth is to respond to expectations of domestic tariffs and cost cuts.”
