Weekly US Mortgage Applications Drop 0.6%

Mortgage hunters were not particularly impressed with the latest drop in interest rates.

Mortgage application volume dropped 0.6% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 10% higher than a year ago, when interest rates were higher.



The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.40% from 4.41%, with points decreasing to 0.40 from 0.47 (including the origination fee) for loans with a 20% down payment. Although minute, that was the third week of declines in mortgage rates. The rate was 37 basis points higher a year ago.

Mortgage refinance volume, which is most sensitive to rates, fell 1% for the week but was nearly 17% higher annually. Last year, refinance volume fell sharply on higher rates.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza