Another dip in mortgage rates isn't swaying the market a month out from the spring home buying season.
Application volume for all home loans tracked by the Mortgage Bankers Association fell 1.2% last week,
"Treasury yields moved lower on softer consumer spending data as consumers are feeling somewhat less upbeat about the economy and job market," said Joel Kan, the MBA's vice president and deputy chief economist, in a press release Wednesday.
The 10-year treasury yield yesterday declined to a level also not seen since mid-December as
Consumers beset by elevated mortgage rates are also facing steep affordability hurdles, such as down payment amounts
Small mortgage rate declines earlier this month briefly spurred a refi streak which has since fizzled out. The MBA's Refinance Index dropped 4% weekly, although it remains 45% higher than the same week a year ago when rates were around the same range.
The pace of applications for Department of Veterans Affairs-backed loans and U.S. Department of Agriculture-sponsored mortgages fell close to 10%.
Consumers meanwhile jumped on a 13-basis point dip in 30-year Federal Housing Administration loan rates, to 6.57%. That refi volume was up 8% weekly, and all FHA activity accounted for 17.4% of all applications last week, the MBA said.
Rates for other loan products are drifting closer to 6%. The average 15-year FRM moved six basis points lower to 6.25% last week, while 5/1 adjustable rate mortgages averaged 6.05% last week.
The average 30-year jumbo mortgage is still at the 7% barrier, falling 3 basis points from last week's 7.03% rate.
