Mortgage rates barely moved last week, but housing buyers can return to the market despite strong winds against spring.
The demand for refinancing was weaker, however, promoting the total volume of the application for 2% last week since the previous week, according to the seasonally adjusted index of the Association of Mortgage Bankers.
The average interest rate of the contract for 30 -year fixed rate mortgages with compliant loan balances, $ 806,500 or less, decreased to 6.71%of 6.72%, with points that decrease to 0.60 from 0.64, including the origin rate, for loans with an initial payment of 20%.
“The markets remained focused on possible changes in commercial policy, while the FED had the fund rate [at] His current level, “wrote Joel Kan, MBA economist, in a statement.
Applications for a mortgage to buy a house increased 1% during the week and were 7% higher than the same week a year ago. That little gain, after weeks of decrease, was enough to put the demand at the highest level in almost two months.
“The purchase activity of last week was mainly driven by a 6 percent increase in FHA applications, since the combination of the loosening housing inventory and diminished mortgage rates have submitted this segment of buyers with more opportunities,” Kan said.
Applications to refinance a mortgage loan decreased 5% from the previous week to the lowest level in a month. They were 63% higher than the same week a year ago. Last year, mortgage rates were 22 higher basic points.
There are few precious ones that can benefit from refinancing today, given record-back mortgage rates only three years ago, but those who may have bought a house in the last two years at higher rates are now taking advantage. The annual comparison is very large just because the general volume is very low.
