Home Buyers in No Rush to Snag Low Interest Rates

Mortgage rates continue to hover at yearly lows, but home buyers aren’t flocking to lock in the rates. Applications for mortgages dropped 6.6 percent last week for both home purchases and refinances, the Mortgage Bankers Association report.

Broken out, refinancing applications dropped 7.4 percent last week, while applications for home purchases, viewed as a gauge of future home sales, continued its drop, falling 5 percent last week. Last week, home purchase applications had fallen by another 5 percent and were about 9 percent from year-ago levels, the MBA reported.

Meanwhile, the 30-year fixed-rate mortgage continues to stay low by historical standards. The average rate nationwide was 4.13 percent week, up 3 basis points from 4.10 percent the week prior, according to the MBA’s survey, which reflects about 75 percent of the U.S. retail residential mortgage application market.

Source: “U.S. Mortgage Applications Fall in Latest Week as Rates Rise: MBA,” Reuters (Oct. 29, 2014)

Rising Rates Soften Loan Demand in Latest Week

Interest rates rose last week, prompting a sharp fall in applications for home mortgages, the Mortgage Bankers Association reported Wednesday.

Loan applications dropped 9.2 percent in the week ending June 13, according to the MBA’s index of mortgage application activity. The MBA’s survey, which reflects 75 percent of the residential mortgage market, measures application demand for both refinancing and home purchases.

Broken out, applications for refinancing fell 12.7 percent last week. Applications for home purchases, viewed as a major indicator of future home purchases, dropped 4.7 percent, the MBA reports.

Mortgage rates were on the rise last week, with the 30-year fixed-rate mortgage rising 2 basis points to 4.36 percent.

The decrease in applications this week comes after a report last week that showed mortgage applications for home purchases had reached a five-month high.

Source: “U.S. Mortgage Applications Drop in Latest Week: MBA,” Reuters (June 18, 2014)