The Mortgage Bankers Association reported this week that mortgage applications have dropped in volume again. This is the sixth decrease over the last eight weeks. The Market Composite Index, a measure of application volume declined by 3.7 percent on a seasonally adjusted basis during the week ended February 8. Declines in mortgage rates generally spur mortgage activity but trepidation about the overall economy seems to have countered that.
“Application activity fell last week – even with rates decreasing – as renewed uncertainty about the domestic and gobal economy likely held potential homebuyers off the market,” said Joel Kan, MBA’s Associate Vice President of Industry Surveys and Forecasts. “The 30-year fixed-rate mortgage dropped to its lowest level since last March, and was 52 basis points lower than its recent high last November.”
Today, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 percent.
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