Big Drop in Mortgage Rates Juices Refinances But Doesn't Seduce Buyers #finances #realestate

Source:  CNBC

Lower mortgage rates are helping more homeowners refinance and reduce their monthly payments, but they are not providing much incentive to homebuyers, who are finding few affordable listings.

Total mortgage application volume increased 4.4 percent last week on a seasonally adjusted basis from the previous week, according to the Mortgage Bankers Association.  The gain was driven entirely by refinancings.

A drop in interest rates to the lowest level since November pushed refinance volume higher by 11 percent for the week.  Volume remained 30 percent below the same week one year ago, when interest rates were even lower.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $424,100 or less decreased 4.17 percent, down from 4.23 percent, with points increasing to 0.39 from 0.37, including the origination fee, for 80 percent loan-to-value ratio loans.

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https://finance.yahoo.com/news/big-drop-mortgage-rates-juices-110014386.html
 

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