(MBA) Applications for home loan refinancing fell by 2% last week to remain 75% below the prior year, despite mortgage rates showing signs of slowing down.
Homebuyers pulled back, with the applications to buy a house remaining unchanged last week from the previous. The applications are 16% below last year.
The Mortgage Bankers Association said that the rate on the 30-year fixed-rate loan was 5.46% last week, a decline from the previous 5.49%. The rates are still at their highest in two years.
MBA associate VP of economic and industry and forecasting Joel Kan commented, saying that refinance borrowers still remain on the sidelines. He says the refinance applications have now declined in nine of the last ten weeks.
Mortgage demand is now close to the lows witnessed in Spring 2020. High prices for homes, besides the costly mortgage, is cited as the reason for the low borrowing activity.
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