“With the positive news about the drop in inflation, and the FOMC projections proclaiming a pivot towards rate cuts, the 30-year fixed mortgage rate reached its lowest level since June 2023, declining to 6.83%,” said Mike Fratantoni, MBA’S SVP and chief economist.
“At least as of last week, borrowers’ response to this rate move was rather tepid,” he added.
What were the report’s findings?
The report found that the refinance share of mortgage activity increased to 39.7% of total applications while the adjustable-rate mortgage (ARM) share of activity was still at 6.3% of total applications.
The FHA share of total applications saw a decrease to 15.5% from the 16.1% seen in the previous week. The VA share of total applications increased to 15.6%. The USDA share of total applications was still at 0.4%. Average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances dropped to 6.83% with points increasing to 0.60 for 80% loan-to-value ratio (LTV) loans.
For those with jumbo loan balances, the average contract interest rate for 30-year fixed-rate mortgages saw a decrease to 7.12% with points increasing to 0.55 for 80% LTV loans. For those backed by the FHA, the rate decreased to 6.65% with points decreasing to 0.69 for 80% LTV loans.
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