Mortgage rates have been on the decline since late April, as closely watched data releases suggest the economy is cooling and that the Fed may start cutting rates as soon as September.
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Homebuyer demand for purchase loans picked up for the third-consecutive week last week after mortgage rates hit their lowest levels in months, according to a weekly survey of lenders released Wednesday by the Mortgage Bankers Association (MBA).
The latest MBA Weekly Applications Survey showed applications for purchase mortgages were up 1 percent last week when compared to the week before, after an adjustment for the Juneteenth holiday.
Applications for government-backed FHA and VA purchase loans were up more than 2 percent week over week, but overall purchase loan requests were still down 13 percent from the same time a year ago.
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Joel Kan
“Mortgage rates were mostly lower last week, with the 30-year fixed rate declining slightly to 6.93 percent, the lowest level in more than three months,” MBA Deputy Chief Economist Joel Kan said in a statement. “Lower rates, however, were still not enough to entice refinance borrowers back, as most continue to hold mortgages with considerably lower rates.”
While essentially flat from the week before, requests to refinance were up 26 percent from a year ago.
Mortgage rates have been on the decline since late April, as closely watched data releases including deceleration in the Consumer Price Index for May and rising jobless claims reports suggest the economy is cooling and that the Federal Reserve may start cutting rates as soon as September.
The next big move in mortgage rates could be triggered on June 28, when the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures…