This, however, does not show up in the weekly averages: The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.08 percent from 4.09 percent, with points remaining unchanged from 0.45 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
"Once again, the weekly average mortgage rate is not telling the story regarding mortgage application volume," said Michael Fratantoni, chief economist for the MBA. "The prior week included days with much lower rates due to volatility around the Fed's announcement that drove refinance volume up. Last week, a more stable rate produced less volume, as rates at this level just do not provide an incentive for most homeowners to refinance."
Refinance application volume decreased 8 percent from the previous week, on a seasonally adjusted basis. Applications to purchase a home, which are less rate-sensitive, fell 6 percent from one week earlier but are 20 percent higher than the same week one year ago, according to the MBA.