Mortgage applications decline for another week along with a dip in mortgage interest rates.
According to the latest Mortgage Bankers Association's Weekly Mortgage Applications Survey for last week, mortgage applications dropped 3.3 percent from the previous week's level, HousingWire reported. Mortgage refinance index fell 5 percent while purchase index dipped 1 percent. This comes despite the upcoming spring buying season which was expected to push up mortgage rates.
Average interest rates for 30-year fixed mortgage loan with a confirming balance of $417,000 or less dropped to 3.93 percent from last week's 3.94 percent, while those with jumbo balances of $417,000 and above fell to 3.85 percent from 3.85 percent the week earlier. For 15-year fixed mortgages, the average contract interest rates were down to 3.18 percent from the previous week's 3.22 percent.
"There are fewer borrowers remaining who are able to benefit from low rates," said Lynn Fisher, MBA's vice president of research and economics, per CNBC. "The decline in average refinance loan size is also a feature of a declining refinance market. Borrowers with larger loan balances tend to be more rate-sensitive. As refinance applications surge, average loan size tends to go up. As we return to a more normal level of refinance applications, the mix of borrowers returns to normal and average loan size declines."
Stan Humphries, chief economist with Zillow Group, expect the numbers of homes for sale to continue to fall throughout the year, consequently pushing up home prices and interest rates.
While the continuing pressure on home prices increase affordability issues and interest rates, it comes as good news for home sellers who are vying for some profit from their properties.
On one hand, one can still hope to further lower his/her mortgage rates. Realtor.com listed some factors a borrower can consider so he/she gets more benefits from the current low mortgage rates.