The holiday week was slow for potential home buyers but even slower for those looking to save money on their monthly mortgage payments.
Applications to refinance a home loan fell 13 percent last week from the previous week, on a seasonally and holiday-adjusted basis, according to the Mortgage Bankers Association (MBA). That pushed overall application volume down 7.3 percent week-to-week.
The drop in refinance activity shows how little the shifts in already-historically-low mortgage rates affect today's borrowers. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased from 4.15 percent to 4.08 percent, the lowest level since May of 2013. Refinance volume is now off 16 percent from a year ago.