According to the Mortgage Bankers Association, total mortgage application volume rose by 3.4% last week, driven by a decrease in the average contract interest rate for 30-year fixed-rate mortgages, which fell from 7.41% to 7.37%.
Despite this decline, rates remain over a percentage point higher than the same week last year, contributing to a 61% drop in refinance applications compared to last year. Joel Kan, vice president and deputy chief economist at the MBA, noted that while the decline in rates provided some relief, most homeowners still benefit from lower rates than current market levels.
Applications for home purchases increased by 4% but are still 18% lower than a year ago. The rising share of adjustable-rate mortgages, which reached 11.3%, indicates that borrowers are seeking savings amidst higher overall rates and economic uncertainty.
As the week progresses, mortgage rates have remained stable, with no significant economic data influencing the bond market ahead of the Federal Reserve's upcoming meeting