Mortgage applications dropped 5.1 percent last week, according to a new report released Wednesday by the Mortgage Bankers Association.
The Refinance Index decreased 7 percent from the previous week but was 84 percent higher than the same week a year ago, while the Purchase Index dipped 2 percent for the week and was 22 percent higher than last year.
“Mortgage rates dropped to another record low last week, falling below the previous record set three weeks ago to 3.14 percent. Refinance activity decreased – despite the decline in rates – but the current pace remains more than 80 percent higher than a year ago when rates were over 4 percent,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “MBA’s forecast calls for rates to remain at these low levels, which will continue to spur strong refinance activity and offer homeowners relief in the form of lower monthly mortgage payments during these uncertain economic times.”
The refinance share of mortgage activity decreased to 63.9 percent of total applications from 65.1 percent the previous week. The adjustable-rate mortgage share of activity decreased to 3.1 percent of total applications.