Steadier Mortgage Rates Buoy Loan Demand
Mortgage applications for refinancing and home purchases remained elevated last week as mortgage rates continued to give consumers incentive to make a move.
“Both the 10-year Treasury yield and the 30-year conventional mortgage fixed rate held steady last week, keeping rates well below the recent highs,” says Lynn Fisher, the Mortgage Bankers Association’s vice president of research and economics. “The recent pause in the upward movement of interest rates continues to encourage late-to-the-game borrowers to refinance and to assist those ready to purchase.”
Total mortgage application volume increased 0.6 percent on a seasonally adjusted basis last week, the MBA reported Wednesday. Still, total volume is nearly 14 percent lower compared to a year ago.
The low rates boosted refinance activity, with volume 2 percent higher week over week. Meanwhile, applications for home purchases dropped 1 percent last week. However, purchase applications remain 9 percent higher than the same week a year ago.
The average on a 30-year fixed mortgage rate was unchanged last week at 4.13 percent, the MBA reports.
Contact our mortgage broker in San Ramon for more information about mortgage rates and refinancing options.