Mortgage hunters were not particularly impressed with the latest drop in interest rates.
Mortgage application volume dropped 0.6% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 10% higher than a year ago, when interest rates were higher.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.40% from 4.41%, with points decreasing to 0.40 from 0.47 (including the origination fee) for loans with a 20% down payment. Although minute, that was the third week of declines in mortgage rates. The rate was 37 basis points higher a year ago.
Mortgage refinance volume, which is most sensitive to rates, fell 1% for the week but was nearly 17% higher annually. Last year, refinance volume fell sharply on higher rates.