Record-Low Rates Do Little to Increase Mortgage Demand
Mortgage interest rates have been hovering at their lowest levels in decades, but that’s done little to sway consumers to buy a home or refinance their mortgage to take advantage of the interest savings.
The Mortgage Bankers Association (MBA) reported Wednesday that for the week ending August 6, 2010, mortgage loan application volume remained relatively flat from the already-depressed level of the week before.
Total app volume increased just 0.6 percent from week-to-week. MBA’s refinance index was up 0.6 percent, while the purchase index rose only 0.3 percent.
The poor weekly showing comes despite the fact that mortgage interest rates again hit new record-lows during the period.
MBA reported that the average contract interest rate for 30-year fixed-rate mortgages (FRMs) decreased to 4.57 percent, down from 4.60 percent the week before. This was the lowest 30-year contract rate ever recorded…
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