Lower mortgage rates didn’t attract more homebuyers to the housing market last week.
Mortgage applications fell 4.3% despite a drop in the 30-year fixed mortgage rate from 4.46% to 4.42%, the Mortgage Bankers Association said Wednesday. Rates, however, generally have climbed higher the previous month.
Applications to refinance and purchase a home both fell. Mortgage applications for refinancing decreased 5% from the previous week and applications to buy a home dropped 4%. Mortgage applications for purchases were still slightly above year ago levels.
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“Mortgage rates were lower last week,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting, “as concerns over global growth, particularly in Germany, outweighed more positive domestic news on first quarter GDP growth and business investment.”
The refinance share of mortgage activity decreased to 38.8% of total applications, down from 39.4% the previous week.
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The adjustable-rate mortgage (ARM) share of activity decreased to 6.2% of total applications. It was the lowest ARM share since August 2018.