Demand for purchase mortgages falls even as rates hit 3-month low

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Interest rates dropped to their lowest level in three months last week, but the decrease did not appear to spur more borrowers to apply for purchase loans.

Applications for purchase loans dropped a seasonally adjusted 6 percent for the week ending Sept. 27 compared to a week earlier and were down 3 percent on an annual basis, according to the latest Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications survey.

The drop in mortgage applications came as interest rates dropped to their lowest level since June of this year, with the average rate for a 30-year fixed-rate mortgage with a balance of $417,500 or less dropping to 4.49 percent from 4.62 percent a week earlier. Source: mbaa.org