Industry NewsMortgage

Home loan apps fall in weekly survey

MBA: Adjustable-rate products suffer as costs climb

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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....