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- U.S. weekly mortgage applications drop 2 percent
U.S. weekly mortgage applications drop 2 percent
The Mortgage
Bankers Association (MBA) reported on Wednesday the mortgage application volume
in the U.S. fell 2.0 percent in the week ended August 28, following a 6.5
percent decrease in the previous week.
According to
the report, refinance applications declined 3.1 percent, while applications to
purchase a home edged down 0.2 percent.
Meanwhile, the
average fixed 30-year mortgage rate fell to 3.08 percent from 3.11 percent.
“Lenders are
reporting that the strong demand for homebuying is coming from delayed activity
from the spring, as well as households seeking more space in less densely
populated areas,” said Joel Kan, an MBA economist. “Both conventional and
government refinancing activity decreased last week, despite 30-year fixed and
15-year fixed mortgage rates declining to near historical lows,” he also noted.
“Mortgage rates have remained below 3.5% for five months now, and it’s possible
that refinance demand may be slowing and will not significantly increase again
without another notable drop in rates.”
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