Mortgage rates dropped briefly after rising steadily for months and borrowers jumped into the market to capitalize.
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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances dropped to 4.09% from 4.15%, with points the same at 0.44 for loans with a 20% down payment.
Demand for refinances surged 9% last week compared with the prior week, but application volumes were 50% lower than the same week, a year earlier.
Joel Kan, an MBA economist stated that mortgage rates declined for the first in 12 weeks as Russia’s invasion in Ukraine triggered investor shift to quality, pushing lower U.S. Treasury yields.
Kan further stated that the average loan size remained near to record highs, with dominant levels of higher-balance loan applications.
Applications for a mortgage to buy a home jumped 9% from the prior week but were 7% lower than the same week, a year earlier.