Falling Rates Are Not Boosting Mortgage Applications

CNBC reports that mortgage application volume dropped last week, despite three consecutive weeks of falling mortgage rates.

Mortgage application volume dropped 0.6% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 10% higher than a year ago, when interest rates were higher.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.40% from 4.41%, with points decreasing to 0.40 from 0.47 (including the origination fee) for loans with a 20% down payment. Although minute, that was the third week of declines in mortgage rates. The rate was 37 basis points higher a year ago.

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