A prolonged period of low mortgage rates is causing decreased demand in weekly mortgage-refinance, as most of the eligible borrowers have already been through the process.
The average contract interest rate for the period of 30-year fixed-rate mortgages with conforming loan balances is unchanged at 3.03% the previous week. Because of this, proposals to refinance a home loan reduced 4% for the week, as per the report by Mortgage Bankers Association.
“Recent uncertainty around the economy and pandemic have kept rates low over the past month, which is why the refinance index has oscillated around these levels,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
Mortgage rates in this week started slightly lower, but still, there is no significant decrease. That can change in either direction.
“All lenders will face increased volatility in the coming days due to the release of several important economic reports culminating in Friday’s big jobs report,” said Matthew Graham, Chief Operating Officer at Mortgage News Daily.
