Mortgage rates below 3% not enough for homebuyers
Refinance share of mortgage activity increased slightly to 67.6 percent of total applications, Mortgage Bankers Association's Weekly Mortgage Applications show
Mortgage applications decreased 1.7 percent from last week, data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications showed.
While the refinance share of mortgage activity increased slightly to 67.6 percent of total applications from 67.5 percent the previous week, adjustable-rate mortgage (ARM) share of activity decreased to 3.4 percent of total applications, the weekly report said.
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"Interest rates drifted lower globally last week, as markets assessed the latest concerns regarding the delta variant. Thirty-year mortgage rates dropped below 3 percent in our survey for the first time since this February, presenting an opportunity for many homeowners who have not yet refinanced to lower their rate and their payments. Refinance application volume slightly decreased, following an 11 percent jump last week," said Mike Fratantoni, MBA’s senior vice president and chief economist. "Purchase application volume decreased again, reflecting the ongoing lack of inventory that continues to drive rapid home-price appreciation across the country."
The average interest rate for 30-year fixed-rate mortgages with conforming loan decreased to 2.97 percent from 3.01 percent, with points decreasing to 0.33 from 0.34, the MBA reported.
The average interest rate for 30-year fixed-rate jumbo mortgage increased to 3.12 percent from 3.11 percent, with points increasing to 0.30 from 0.27.
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The average 30-year FHA-backed fixed-rate mortgages rose to 3.08 percent from 3.03 percent, with points decreasing to 0.29 from 0.35.
The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.