WASHINGTON– Total mortgage application volume dropped 3.9% last week compared with the previous week, even though mortgage rates fell slightly, according to the Mortgage Bankers Association’s seasonally adjusted index. It’s the third straight week of a volume decline.
The MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, decreased to 6.92% from 6.98%, with points falling to 0.66 from 0.67, including the origination fee, for loans with a 20% down payment.
Applications to refinance a home loan, which are most sensitive to rates, still declined 4% for the week but remain 42% higher than the same week one year ago, the MBA reported.
Refi Activity Also Down
“Refinance activity fell across both conventional and government segment and the overall average refinance loan size was the smallest since July 2024, as potential borrowers hold out for larger rate drops,” MBA Economist Joel Kan said in a statement.
Applications for a mortgage to purchase a home fell 4% for the week, but were 18% higher than the same week one year ago, according to the MBA.
