Thursday
July 31, 2014

Loan Demand Continues to Soften

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Loan Demand Continues to Soften

Applications for mortgage refinances continued to tumble last week as mortgage rates hovered near two-year highs. The total number of mortgage applications — including refinances and home purchases — dropped 1 percent last week compared to the prior week, according to the Mortgage Bankers Association. 

Applications for refinances were down 1 percent, reaching its lowest level in two years. The index measuring applications for home purchases — an indicator for future home sales — dropped 2 percent last week compared to the previous week. 

After climbing every week since May, mortgage rates did drop slightly last week, MBA reports. The 30-year fixed-rate mortgage dropped to 4.58 percent last week from 4.68 percent the previous week. The 15-year fixed-rate mortgage fell to 3.63 percent from the prior week’s 3.7 percent average, MBA reports. 

Source: “U.S. Mortgage Applications Decline 1% Last Week -MBA,” The Wall Street Journal (July 24, 2013)

Read more:

Mortgage Applications Fall as Rates Surge