Mortgage rates reached a nearly three month high, and refinancing rates fell one percent last week. Still, the volume of refinance rate volume is 134% higher than this time last year. Joel Kan, the MBA’s associate vice president of economic and industry forecasting, says current housing market trends predict that purchase rate applications will continue to gain year-over-year.
Mortgage rates moved to their highest level in nearly three months last week, giving homeowners little incentive to refinance their home loans.
Total mortgage application volume rose 0.6% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 59% higher than a year ago, thanks to today’s stronger refinance market.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 4.05% from 4.02%, with points decreasing to 0.37 from 0.38 (including the origination fee) for loans with a 20% down payment.
“The 10-year Treasury rate rose slightly last week, as markets expected more progress toward a trade deal between the U.S. and China,” said Joel Kan, the MBA’s associate vice president of economic and industry forecasting.
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