Mortgage rates for conventional loans didn’t budge last week, and neither did overall demand, but borrowers are actively seeking other loan products that offer bigger savings.
Total mortgage application volume increased 0.3% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, remained unchanged at 6.21%, with points remaining unchanged at 0.56, including the origination fee, for loans with a 20% down payment.
Applications to refinance a home loan rose 1% for the week and were 101% higher than the same week one year ago. Mortgage rates were 74 basis points higher a year ago. Most lenders say if a borrower can save 75 basis points, then the cost of the refinance is worthwhile.
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