WASHINGTON–Mortgage rates continue to decline. The benchmark 30-year fixed mortgage rate fell to a new 10-month low of 4.54% from 4.57% a week ago,
according to Bankrate.com’s latest survey.
Mortgage rates declined across other loan terms, too, Bankrate.com reported, finding the average 15-year fixed mortgage rate has declined to 3.94% — the lowest in a year. The average 5/1 adjustable mortgage rate slipped one basis point to 4.21% from the previous week.
Although rates are pushing lower, total mortgage applications fell 7% from a week ago, according to data from the Mortgage Bankers Association’s applications survey for the week ending Feb. 8.
Purchase applications plummeted 6% and were 5% lower than the same week a year ago, the MBA reported. Refinance applications saw a much smaller decline of 0.1% from the previous week.
More Purchases Expected
“Application activity fell last week — even with rates decreasing — as renewed uncertainty about the domestic and global economy likely held potential homebuyers off the market,” said Joel Kan, MBA’s associate vice president of industry surveys and forecasts, in a released statement. “Despite the recent decline in applications, we still expect that the continued strength of the job market and lower rates will support more purchase activity in the coming months.”