Lower rates do little to spur loan demand
Mortgage rates dropped last week, but that didn’t seem to push homeowners or homebuyers to take advantage. Total mortgage applications dropped 0.4 percent for the week. Volume is now 6 percent lower than a year ago, according to the Mortgage Bankers Association.
Refinance applications, which tend to be the most rate-sensitive, dropped 1 percent last week and are now 18 percent lower than a year ago. Mortgage rates were considerably lower a year ago when compared to today.
In what should be a prime time for homebuying, mortgage applications for home purchases were essentially flat last week, dropping 0.2 percent. Home purchase applications are barely 3 percent higher than a year ago, the MBA reports.