It’s almost as if falling mortgage rates are becoming hum-drum, at least for homebuyers.
Total mortgage application volume increased 1.3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 40% higher than a year ago, largely because lower mortgage rates are strengthening the refinance market.
Rates have fallen in three of the last four weeks and are now at the lowest level since September 2017. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.06% from 4.14%, with points decreasing to 0.35 from 0.38 (including the origination fee) for loans with a 20% down payment. That is 78 basis points lower than a year earlier.
“Markets last week reacted to a more dovish FOMC statement and forecast, with Treasury yields falling after the meeting,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Mortgage rates…