The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $726,200 or less fell from 6.42% to 6.23% last week, with points falling to 0.67 from 0.73 for loans with a 20% down payment. As a result, mortgage application volume rose nearly 28% on a weekly basis, while refinance demand inched 34% higher, CNBC reports.
Applications for a mortgage to purchase a home rose 25% week to week, though measures of buyer demand remained low on a year-over-year basis, and measures of inventory are mostly stagnant as new listings continue to fall.
“As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers,” said Mike Fratantoni, senior vice president and chief economist at the MBA.
The market, however, is not seeing any surge in inventory. The number of active listings is about 21% higher than it was a year ago, according to Redfin, a real estate brokerage. That is mostly because homes are now sitting on the market longer, with far fewer sales. New listings of homes for sale are down 22% year over year.
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