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According to the Mortgage Bankers Association's latest data, mortgage application volume increased 8.9 percent last week over the previous week, and 5.7 percent annually.
Rate-sensitive refinance applications lead the way up for overall volume, with 12 percent weekly growth and 8.5 percent gains year-over-year. The average interest rate for 30-year fixed mortgage products dropped from 4.55 percent to 4.45 percent, and continue to decrease this week. CNBC reports that some experts now anticipate rates could fall to the high 3 percent range, adding some affordability breathing room for homebuyers this spring.
That was a reaction to the Federal Reserve announcement that it does not expect to raise rates anymore this year. Some are now suggesting the central bank could even lower rates. Bond yields fell even further on concerns of slowing economic growth overseas. Mortgage rates loosely follow the yield on the 10-year Treasury note.
"Rates dropped across all loan types, and the 30-year fixed-rate mortgage is now more than 70 basis points below last November's peak," said Joel Kan, an MBA economist. "The average loan size increased once again to new highs for both purchase and refinance loans, as borrowers with — or seeking — larger loans tend to be more reactive to the drop in rates."
