Arabic version: تراجع معدلات الرهن العقاري، لكن الطلبات تواصل الانخفاض

According to Cnbc, mortgage demand fell again last week even as the average rate on a 30-year fixed-rate mortgage declined for the first time in more than two months. Total mortgage application volume dropped 5.3% from the previous week, based on the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming balances of $832,750 or less decreased to 7.41% from 7.50%. Points, including the origination fee, fell to 0.75 from 0.83 for loans with a 20% down payment. Joel Kan, an MBA economist, said lower rates were not enough to lift activity, with both purchase and refinance applications continuing to fall.

Applications to refinance a home loan slipped 2% from the prior week and were 59% lower than the same week a year earlier. Rates are now more than a full percentage point higher than a year ago, leaving a small pool of borrowers who could benefit from refinancing. Purchase mortgage applications declined 7% for the week and were down 18% from a year earlier.

Buyers appear to be responding less to weekly rate changes than to the overall higher level of borrowing costs. A National Association of Realtors report released Tuesday showed a sharp decline in September pending home sales, which are measured by signed contracts. For buyers still in the market, the share choosing adjustable-rate mortgages held at 10.5%, as ARM rates remained almost a full percentage point below the 30-year fixed rate. Mortgage News Daily said rates have changed little to start this week after volatility tied to multiple monthly inflation reports last week.