A key index that measured mortgage applications last week was essentially unchanged, only nudging up 0.6 percent, despite historically low interest rates on fixed-rate mortgages.
The Mortgage Bankers Association reported today that its Market Composite Index was mostly flat last week, compared to the previous week.
The index component that measures refinance activity edged up 0.6 percent, while the index that gauges mortgage applications for the purchase of a home was virtually unchanged with a 0.3 percent increase.
The refinance share of mortgage activity only slightly increased to 78.1 percent of total applications, from 78.0 percent the previous week.
The MBA said the average contract interest rate for 30-year fixed-rate mortgages decreased to 4.57 percent last week, compared to 4.60 percent the previous week, for 80 percent loan-to-value (LTV) ratio loans.
This was the lowest 30-year contract rate recorded in the MBA’s survey dating back to 1990.
The survey also recorded a record low for the 15-year fixed rate mortgage, decreasing to 3.95 percent from 4.03 percent on 80 percent LTV ratio loans.
Freddie Mac has also been reporting record lows for 30-year and 15-year fixed rate mortgages for several weeks.
