After soaring last week by more than 20 percent, mortgage applications dropped 5 percent compared to the week prior, the Mortgage Bankers Association reports in its weekly survey. The most recent survey was for the week ending Jan. 20, which included the Martin Luther King holiday.
Mortgage applications for refinancings fell 5.2 percent during the week while applications for purchases dropped 9.7 percent. Purchase applications were 6.5 percent lower compared to the same week one year prior, the MBA reports.
The MBA reports that the average contract interest rate for the 30-year fixed-rate mortgage, the most popular choice among home buyers, increased to 4.11 percent last week from 4.06 percent.
Last week, low mortgage rates helped send mortgage applications surging 23 percent, with applications for home purchases, a future gauge of home buying, jumping 10.3 percent alone.
By Melissa Dittmann Tracey, REALTOR® Magazine Daily News
- ^ helped send mortgage applications surging 23 percent (realtormag.realtor.org)
- ^ How Long Will Low Mortgage Rates Last? (feedproxy.google.com)