WASHINGTON–Mortgage volume has declined slightly, with some analysts saying it’s the result of consumers waiting for rates to decline even further.
According to the Mortgage Bankers Association’s latest data, total mortgage application volume decreased 0.7% on a seasonally adjusted basis last week from the previous week.
Refinance volume was down 2% from the previous week on a seasonally adjusted basis, but was up 34% over one year earlier when rates were higher, the MBA reported.
Mortgage applications to purchase a home increased 1% for the week and were 10% higher than the same week one year ago.
"Treasury rates fell through the course of last week, as the Fed left their target rate unchanged, and concerns grew again about global growth, particularly in Europe and Japan," said Michael Fratantoni, chief economist for the MBA in a released statement. Refinance volume dipped for the week, but purchase application volume continues to show 2016 as a strong year."
The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.66% from 3.70%, the MBA said.
The average rate for jumbo loan balances fell to 3.64% from 3.69%.