Despite a considerable drop in long-term mortgage rates, borrowers last week were not breaking down the doors of lenders trying to get a piece of the action, the Mortgage Bankers Association reported today.

According to MBA, home loan application volume fell 2.9 percent last week on a seasonally adjusted basis from the previous week, led by a 4.6 percent decline in the refinance index and a 1 percent drop in the index that tracks purchase loans.

Sizably lower costs provided little impetus to borrow, even with average interest rates last week sinking 39 basis points on 30-year loans and 48 basis points on 15-year loans. MBA reported that the average rate on 30-year fixed-rate mortgages fell from 6.37 percent to 5.98 percent, while the average 15-year fixed rate plunged from 5.72 percent to 5.24 percent. The points that borrowers paid to attain these rates averaged 0.89 on the 30-year loans, down from 1.05 in last week’s survey, and 0.97 on the 15-year loans, down from 1.06.

Costs for adjustable-rate mortgages (ARMs), however, climbed in the survey, with the average rate on one-year ARMs rising from 6.72 percent to 6.95 percent and average points gaining from 1.27 to 1.64.

MBA reported that the refinance share of loan applications last week fell to 49.7 percent from 50.6 percent a week earlier, and the ARM share dropped by nearly half, from 15.5 percent to 7.9 percent during the period.

The Mortgage Bankers Association survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.


***


What’s your opinion? Leave your comments below or send a
letter to the editor.


Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×