Loan Demand Continues to Soften
Applications for mortgage refinances continued to tumble last week as mortgage rates hovered near two-year highs. The total number of mortgage applications — including refinances and home purchases — dropped 1 percent last week compared to the prior week, according to the Mortgage Bankers Association.
Applications for refinances were down 1 percent, reaching its lowest level in two years. The index measuring applications for home purchases — an indicator for future home sales — dropped 2 percent last week compared to the previous week.
After climbing every week since May, mortgage rates did drop slightly last week, MBA reports. The 30-year fixed-rate mortgage dropped to 4.58 percent last week from 4.68 percent the previous week. The 15-year fixed-rate mortgage fell to 3.63 percent from the prior week’s 3.7 percent average, MBA reports.