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Buyers Not Taking Advantage of Low Rates

Mortgage rates remained near yearly lows last week, but home buyers didn’t take advantage of the savings. Despite the low rates, mortgage applications for home purchases fell 1 percent last week, according to the Mortgage Bankers Association.

“Home buyers are out in force this spring but are being met by higher prices and steeper competition,” CNBC reports.

Regardless of the latest week’s dip, applications for home purchases do remain 17 percent higher than the same week a year ago. But most of the uptick lately in mortgage applications is coming from refinancings. Refinancing applications increased 3 percent week-to-week and are up 18 percent in the past four weeks alone, MBA reports.

The average on the 30-year fixed-rate mortgage rose to 3.83 percent last week from 3.82 percent the week prior, MBA reports.

Source: “Mortgage Applications Rise 1.3% But Buyers Pull Back,” CNBC (April 20, 2016)

Reprinted from REALTOR® Magazine Online (http://realtormag.realtor.org), April 20, 2016, with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2016. All rights reserved.

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