The Mortgage Bankers Association (MBA) reports the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 or less declined to 6.44% from 6.50%. The average rate on larger loans rose slightly.
MBA reports mortgage applications increased 0.5% from a week earlier. Joel Kan, MBA’s vice president and deputy chief economist says four straight weeks of interest rate declines appear to be drawing some buyers back to the market but most of the mortgage applications were refinancing applications.
“Rates have now come down more than 80 basis points from a year ago,” Kan said. “Mortgage applications were slightly higher, driven by marginally stronger purchase activity. Refinance applications were essentially unchanged but are still 85% higher than last year as borrowers continue to act."
Freddie Mac says rates are even lower
But in more up-to-date data, Freddie Mac’s Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage this week averaged 6.35%.
"Mortgage rates fell again this week due to expectations of a Fed rate cut,” said Sam Khater, Freddie Mac’s Chief Economist. “Rates are expected to continue their decline and while potential homebuyers are watching closely, a rebound in purchase activity remains elusive until we see further declines."
The Primary Mortgage Market Survey is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit.