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A slight drop in mortgage<\/a> rates last week did not lead<\/a> to much mortgage activity. Total mortgage application volume\u2014for refinances and home purchases\u2014mostly stayed flat last week, dropping by a mere 0.8 percent compared to the previous week on a seasonally adjusted basis, the Mortgage Bankers Association reported Wednesday.<\/p>\n The MBA reported the average for a 30-year fixed-rate mortgage dropped to 4.33 percent last week from 4.46 percent the week prior.<\/p>\n Mortgage applications are now 11 percent lower than the same week one year ago, mostly due to a drop in refinancing applications.<\/p>\n Refinance applications saw a 3 percent decline last week and are down nearly 26 percent from a year ago, even when mortgage rates were higher. The decrease on the refinance side of business may prompt more mortgage bankers to turn their attention more to the purchase-side of mortgages. As such, lenders<\/a> may be more tempted to ease tight credit conditions as they try to better compete for business, CNBC reports.<\/p>\n Meanwhile, applications for home purchases last week eeked out a 1 percent gain and are 4 percent higher than a year ago. Industry analysts say that purchase applications could be much stronger if there were higher inventories of homes available for sale.<\/p>\n Demand is high but supply remains low. Real estate<\/a> professionals reported a 26 percent spike in the number of home tour requests in February, according to a monthly survey conducted by Redfin.<\/p>\n \u201cThe only factor holding back sales this spring is supply,\u201d says Nela Richardson, Redfin\u2019s chief economist. \u201cLimited inventory, particularly for starter homes, has put a crimp in the 2017 market. We expect to see more listings<\/a> hit the market this spring, but there will still not be enough inventory to match homebuyer demand.\u201d<\/p>\n Source: \u201cMortgage Applications Stay Flat Even as Rates Drop to Lowest in Three Weeks,\u201d CNBC (March 29, 2017)<\/em><\/p>\n<\/div>\n<\/div>\n [ad_2]
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