The Mortgage Bankers Association reported that total mortgage application volume for refinancings and home purchases dropped 1.9 percent on a seasonally adjusted basis compared to the previous week. Volume is now 5.5 percent lower than a year ago.
Refinancings were the cause of most of that drop. The share of refinancing applications fell to the lowest level in a decade, and applications are now nearly 13 percent lower than a year ago, according to the MBA. Higher interest rates have given fewer homeowners incentive to refinance.
The 30-year fixed-rate mortgage averaged 4.66 percent last week, down slightly from 4.69 percent, the MBA reports.
Applications to purchase a home dropped 2 percent last week and are 0.5 percent lower than a year ago. Consumer sentiment for buying has been volatile in recent months but did post a rebound in March, according to a
survey by Fannie Mae.
"The primary driver of this month's increase was the sizable rise in the net share of consumers who think it's a good time to buy a home, which returned the indicator to its year-ago level," writes Fannie Mae's chief economist Doug Duncan. "On the whole, a slight majority of consumers continue to express optimism regarding the overall direction of the economy."
Source: “Mortgage Refinances Fall to the Lowest Level in a Decade Amid Lean and Expensive Spring Housing Market,” CNBC (April 11, 2018)
