Daily Real Estate News | Wednesday, August 24, 2016
Even the slightest fluctuations in mortgage rates are having a big impact on application volume. Total mortgage applications, including for refinancings and home purchases, dropped 2.1 percent on a seasonally adjusted basis last week as rates rose slightly, the Mortgage Bankers Association reported Wednesday.
Nevertheless, mortgage application volume is still 28 percent higher than the same week a year ago, when rates were much higher. Most of the uptick in applications, however, is due to refinancing demand.
The average 30-year fixed-rate mortgage bumped up to 3.67 percent last week from a 3.64 percent average the previous week, MBA reports. Applications for refinancings dropped 3 percent last week. Still, refinancings are nearly 45 percent higher than the same week a year ago.
Applications for home purchases dropped slightly by 0.3 percent last week and are 7.7 percent higher than a year ago, MBA reports. However, applications for purchases are now at a six-month low.
Source: “Weekly Mortgage Applications Drop 2.1% as Rates Edge Higher,” CNBC (Aug. 24, 2016)