WASHINGTON–Mortgage rates have slid to a three-week low, but that hasn’t stopped refinancings from dropping to their lowest point in eight years. According to the Mortgage Bankers Association, the refinance share of mortgage activity last week was down a significant 44% of total applications.
The MBA data show the average contract interest rate for 30-year, fixed-rate mortgages decreased to 4.33% from 4.46%.
Analysts expect the refinance market will continue in the doldrums, and that the purchase market will only become that much more competitive.
“Markets adjusted expectations last week as attempts to repeal and replace the Affordable Care Act stalled and bond yields declined,” said Lynn Fisher, VP-research and economics with the MBA, in a statement. “This pushed mortgage rates down for the first time in three weeks. As an early gauge of spring buying activity, purchase applications for the last four weeks were all higher than the corresponding week a year ago, up an average of 4.8% on a year-over-year basis."