Mortgage rates will fall to a lowest rate since mid-December, but demand is still lacking

Mortgage rates fell again last week, reaching lowest levels in two months, but demand for mortgages was unresponsive. The total mortgage application volume fell 1.2% from the previous week, according to the Mortgage Banks Association’s seasonally adjusted index.

The average contract interest rate for a 30-year fixed-rate mortgage with a conforming loan balance (below $766,550) fell from 6.93% to 6.88%, with points falling from 0.66 (including original fees) to 0.61, down 20% I did. payment.

“Treasury yields have been lowered with softer consumer spending data as consumers feel a bit brighter about the economy and job markets,” said Joel Kang, vice president and vice-chief economist at MBA. Ta.

Mortgage refinance applications, which had overcome most of January and early February, fell 4% in a week, but 45% higher than the same week a year ago. Last year, at this point, the mortgage rate was 16 basis points higher.

“While overall refinance application activity has been fairly weak, FHA’s refinance application has increased by 8% in a week,” Kan added.

Applications to buy a mortgage home were flat for a week, 3% higher than the same week a year ago. The resale market is seeing more supply as homes sit in the market longer. However, there are more options, but stocks are still historically low, so prices have not been relaxed much.

Mortgage News Daily continues to lower mortgage rates to begin this week. Over the past four operating days, the average top tier mortgage rate has dropped by 22 basis points. That may not seem like a lot, but the prices have been running very narrowly over the past month.

“Long-term, bonds are now fashion,” says Mortgage Graham, chief operating officer of Mortgage News, who say that if demand rises, prices will drop. “The broadest and most common explanations relate to expectations for a downshift in global economic growth in response to domestic tariff and cost-cutting efforts.”