The sale sign will be in front of your home in Miami, Florida on May 12, 2025.
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The mortgage rate fell slightly last week, but it did nothing to stimulate demand for mortgages. According to the Mortgage Bankers Association’s Seasonally Adjusted Index, total mortgage applications fell 3.9% compared to last week.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances fell below $806,500 from 6.98% to 6.92%, with points falling to 0.66, including the origin fee for a 20% down payment loan. Rates have actually moved in very narrow areas over the past two months.
Applications to refinance mortgages, which are most sensitive to weekly rate movements, still fell 4% for the week, but 42% higher than the same week a year ago. At this point last year, the rate was 15 basis points higher, so it wasn’t a big difference, but it doesn’t take much time to move the needle, so the volume is not too low.
“Refinance activities have declined across both traditional and government segments, with the average refinance loan size being the smallest since July 2024.
Mortgage applications to buy mortgages fell 4% for a week, but 18% higher than the same week a year ago. The spring season has slowed to say the least, and despite the current high demand for mortgages, closed sales are still lower than last year. The main driver of increasing purchasing demand is simply supplying supply in the market. However, considering how high the highest level in five years is, sales should be even stronger.
Mortgage fees started quite flat this week. The next big move is expected to be released on Friday, a very important monthly employment report.