People are waiting to visit a house for sale in Floral Park, Nassau County, New York.
Wang Ying | Xinhua News Agency | Getty Images
After rising for three weeks, mortgage rates fell again slightly last week, but did not appear to have any effect on mortgage demand.
The total volume of applications increased 1.6% last week compared to the previous week, according to the seasonally adjusted Mortgage Bankers Association index.
The average contract interest rate for 30-year fixed-rate mortgages with compliant loan balances ($ 548,250 or less) decreased to 3.03% from 3.06%, with points down from 0 , 34 to 0.29 (including home commission) for loans with a 20% down payment.
“Treasury yields fell last week as investors continue to watch anxiously as the rise in COVID-19 cases in several states begins to slow economic activity. As a result, mortgage rates fell slightly.” , said Joel Kan, an MBA economist.
Applications to refinance a home loan, which are highly rate-sensitive, rose just 1% more during the week and were 3% higher than the same week a year ago. The problem is that so many borrowers already refinanced at even lower rates last fall.
Loan applications to buy a home increased 3% during the week, but were 16% lower than in the same week a year ago. Home buyers are on an affordable wall and the supply of homes for sale, despite rising slightly, is still too low.
“The purchasing index was at its highest level since early July, although it continued to slow the pace of 2020,” Kan said, adding: “There was also some decline in the Average loan size, which may be a sign that more first-time buyers looking for lower priced homes will be helped by the recent increase in inventory selling both new homes and homes existing. “