Mortgage Bankers Association

Mortgage rates hit a new low last week as applications continued a downward trend, with total applications dropping 0.7%, according to the Mortgage Bankers Association.

Mortgage rates hit yet another record low last week as applications continued a downward trend, with total applications dropping 0.7 percent on a seasonally adjusted basis and 1 percent on an unadjusted basis, week over week, according to the latest weekly mortgage survey by the Mortgage Bankers Association.

The 30-year fixed mortgage rate declined to 3 percent, according to the survey, down from last week’s 3.01 percent. The rate for a 15-year fixed-rate mortgage remained unchanged from the week prior at 2.59 percent.

Despite waning demand, applications are still far ahead of last year’s levels in both the refinance and new purchase sector. The refinance index was up 44 percent year over year, while the unadjusted purchase index was up 24 percent year over year, according to the Mortgage Bankers Association.

“Mortgage applications for refinances and home purchases both decreased slightly last week, despite the 30-year fixed mortgage rate declining to a new MBA survey low of 3.00 percent,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.

“Refinance and purchase activity continue to run well ahead of last year’s pace, fueled by record-low rates and strong homebuyer demand,” Kan added. “Housing supply is a challenge for many aspiring buyers, but activity should continue to stay strong the rest of the year.”

An increase in applications for government-backed mortgages helped offset some of the overall declines, increasing 3 percent week over week. There was also an 11 percent week-over-week increase in United States Department of Veterans Affairs (VA) refinance applications.