Mortgage demand jumped for the second week as rates fell slightly, according to the weekly survey from the Mortgage Bankers Association.
- Purchases increased 7% from one week earlier and are now down 38% compared to the same week one year ago.
- Refis were up 5 percent from the previous week and are now down 74% compared to the same week one year ago.
Breaking It Down. The refinance share of mortgage activity decreased to 28.2% and The adjustable-rate mortgage share of activity fell to 8.5% of total applications.
Rates. The average contract interest rate for 30-year fixed-rate mortgage fell to 6.71%, down 8 basis points from last week but is still 264 basis points higher than one year ago.
- The 15-yr fixed contract interest rate averaged 6.14%, down 11 basis points from last week but is still 259 basis points higher than one year ago.
Crystal Ball. With rates falling this week, it is almost guaranteed we see mortgage demand increasing for the third week.