Interest rates on the 30-year fixed-rate mortgage dropped last week, but it wasn’t enough to entice more refinancers and potential buyers to take out loans.
The Mortgage Bankers Association reported on Wednesday that total loan volume—which includes refinancings and home purchases—was unchanged last week compared to the previous week.
Typically refinance applications perk up when interest rates drop, but the MBA reported the refi market actually saw the reverse, dropping 1 percent for the week on a seasonally adjusted basis. Refinance volume is now nearly 37 percent lower than the same week a year ago.
Applications to purchase a home did eke out a 1 percent gain during the week. Applications now are 9 percent higher than the same week a year ago. Home buyers seem to be less concerned about interest rates and more hampered by the limited number of homes for sale and rising home prices, CNBC reports.
The average 30-year fixed-rate mortgage dropped to 4.18 percent last week, from 4.22 percent the week prior. Mortgage rates were continuing to move lower this week and are at their lowest levels in about three weeks, the MBA reports.