Mortgage applications fell for the second week in a row, according to the latest data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey. Although mortgage rates are near their lowest levels since last November, many buyers appear to be holding out for even further drops.
"Mortgage rates generally fell, but not as low as they had in 2016," said Joel Kan, an economist for the MBA. "Borrowers potentially looking at a refinance might be waiting for a much bigger decrease in order to act."
Applications for both home purchases and refinancing declined by 2.3 percent on a seasonally adjusted basis for the week ended August 25. In total, applications are currently down 25 percent from last year. Gains made earlier in the year in home purchases over 2016 are slowly shrinking due to buyers being unable to find a suitable home for an affordable price.
Today, conforming no-point 30-year fixed mortgage rates averaging 3.875 percent while 15-year rates are near 3.125 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.