May 26, 2018

Loan Demand Eases, Even as Rates Hold Steady

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Loan Demand Eases, Even as Rates Hold Steady

Mortgage applications dropped 3.6 percent last week compared to the prior week, as mortgage rates mostly held steady, the Mortgage Bankers Association reports. 

“A recent run-up in interest rates has curbed some individuals' appetite to buy a new home and reduced the appeal of mortgage refinancing, while mortgage rates have steadied somewhat after a torrid increase this summer,” The Wall Street Journal reports. 

The refinance index dropped 3.8 percent last week, mostly attributed to a big drop in the government refinance index. Loan applications for home purchases, viewed as an indicator for future home sales, dropped 3.4 percent for the week. 

The MBA reported 30-year fixed-rate mortgages averaged 4.58 percent last week, unchanged from the prior week. Average rates on the 15-year fixed-rate mortgage ticked up slightly to 3.67 percent, compared with 3.63 percent the prior week. 

The MBA’s mortgage application index reflects more than 75 percent of the U.S. residential market for mortgage applications. 

Source: “U.S. Mortgage Applications Down 3.6% Last Week - MBA,” The Wall Street Journal (July 31, 2013)

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