Mortgage rates are hovering at the lowest averages in years, but home buyers aren’t rushing to take advantage. Mortgage applications dropped 1.6 percent last week compared to the previous week on a seasonally adjusted basis, the Mortgage Bankers Association reports.
“Purchase applications jumped up during the first full week of April and had effectively remained at that level, on an unadjusted basis, before falling this week,” says Joel Kan, the MBA’s associate vice president of industry surveys and forecasting. “The seasonally adjusted purchase index decreased to the lowest level since February, led by declines in applications for larger home purchase amounts” (such as declines in the jumbo loan market, loan values higher than $417,000).
The MBA reports the average on a 30-year fixed-rate mortgage held steady at 3.82 percent last week.
Source: “Lowest Rates in a Year No Enticement: Mortgage Applications Down 1.6%,” CNBC (May 18, 2016)