Mortgage applications experienced another down week, even as rates remain low. According to data from the Mortgage Bankers Association, applications to purchase and refinance dipped 2.8 percent combined from one week earlier. This latest MBA Weekly Mortgage Applications Survey is for the week ended July 28.
The Refinance Index fell by four percent on a week-to-week basis and only accounted for 45.5 percent of total applications – also a decrease. Applications to purchase, when seasonally adjusted, decreased two percent from the prior week, dropping to its lowest level in nearly five months.
The drop indicates that interest rates may be less of a concern to buyers than soaring home prices. While mortgage rates are historically low, savings in interest may be diminished by high prices. Refinances are particularly sensitive to changes in rates which are currently near their lowest for the year with conforming no-point 30-year fixed mortgage rates averaging 4 percent while 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.