WASHINGTON–Mortgage interest rates declined slightly in the latest weekly numbers, but the reduction did little to goose volume.
According to the Mortgage Bankers Association, mortgage application volume was unchanged last week from the previous week. Even applications for refinancings, which typically rise when rates decline, fell 1% for the week on a seasonally adjusted basis, according to the MBA.
Refinance volume stood 36.5% lower than the same week one year ago, when interest rates were lower.
For the week the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $424,100 or less decreased to 4.18% from 4.22%, with points decreasing to 0.38 from 0.43, including the origination fee, for 80% loan-to-value ratio loans, the MBA said.
In a statement released with the data, MBA Economist Joel Kan said, “Treasury yields weakened last week following the release of more details around the administration's tax reform plan and the announcement of a new Fed chair. There was an almost 8% increase in FHA refinance applications over the week following a two-basis-point decrease in the FHA rate."