Mortgage rates edge lower as homebuyer demand weakens
Mortgage rates eased as U.S. mortgage applications fell 2.5% last week See why lower borrowing costs still failed to lift homebuying and refis
Mortgage rates fell slightly last week, but that did not lead to stronger activity in the U.S. housing market. According to the Mortgage Bankers Association, total mortgage application volume declined 2.5% from the prior week, after adjusting for the Memorial Day holiday.
The average contract rate for 30year fixed mortgages with conforming loan balances slipped to 6.57% from 6.65%. Even so, applications for home purchases dropped 3% to their slowest pace since April, while refinance applications fell 2% and remained below recent levels.
The MBA said lower rates were influenced in part by easing energy prices tied to tensions in the Middle East. Analysts also noted that mortgage demand stayed subdued even as rates moved down, and bond markets remained relatively calm heading into the latest U.S. employment report.