After a steep dive in volume two weeks ago, applications for mortgage refinances and home purchase loans were little changed last week, data from the Mortgage Bankers Association (MBA) show.
Applications mortgage refinances and home purchase loans fell one percent on week on a seasonally adjusted basis. While reports this week showed an increase in new and existing homes sales in May, the mortgage numbers portend a late summer slowdown.
Mortgage rates are lower than they were a year ago—the first time that's happened since last June, when rates spiked a full percentage point on fears of the Federal Reserve would begin to "taper" its mortgage bond buying program. Now, months into the Fed's taper, rates have stabilized at low levels. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.33 percent from 4.36 percent.