Mortgage Bankers Association have released their weekly report on Wednesday and the report revealed that mortgage applications decreased despite of the rate decrease.
According to cnbc.com, mortgage application volumes had decreased with 6.7% for the week that ended last September 25. MBA said that the changes are brught by the volatility of the stock market and overseas financial markets. Michael Fratantoni, chief economist for the MBA, said "Once again, the weekly average mortgage rate is not telling the story regarding mortgage application volume. The prior week included days with much lower rates due to volatility around the Fed's announcement that drove refinance volume up. Last week, a more stable rate produced less volume, as rates at this level just do not provide an incentive for most homeowners to refinance."
Along with the decrease in mortgage applications, refinance application also decreased with 8 percent and applications for purchasing a home decrease with 6 percent. However, it is still 20 percent higher than last year on the same week.
National Association of Realtors said that fall season is mostly the start of slowdown in home buying but this year's fall has shown an unusual slowdown.
Redfin, a real estate brokerage, released a report stating that "While September and October look steady, there are early signs that point to a softening market in the final two months of the year, the number of Redfin customers touring homes held steady from July to August, but fewer people actually made offers."
According to 247wallst.com [24/7 Wall St.], MBA's refinance applications fell with 8 percent. Despite of the decrease in applications, some mortgage lenders still offer a rate of 3.875 percent to 4.00 percent for a 30- year- fixed- rate mortgage plan. Other are becoming risk taker by offering a 3.75 percent mortgage rate.
According to MBA, most of mortgage loan rate had decreased compared last week. MBA reported that "a 30-year fixed-rate mortgage ticked down from 4.09 percent to 4.08 percent. The rate for a jumbo 30-year fixed-rate mortgage decreased from 3.99 percent to 3.96 percent. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.31 percent to 3.29 percent."