The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.62 percent, the lowest level since July, from 3.66 percent, with points decreasing to 0.32 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio loans.
However, mortgage applications to purchase a home stalled, falling 0.1 percent for the week and dropping 14 percent from a year ago. That annual drop may have less to do with homebuying demand and more to do with new mortgage rules that went into effect a year ago.
“The mortgage industry is celebrating the one year anniversary of the TRID/KBYO regulatory implementation date this week,” said Michael Fratantoni, chief economist for the MBA. “Purchase application volume last week was almost 14 percent below the same week a year ago. That was the last week for mortgage applications to be covered by the prior disclosure regulations and as a result there was a spike in application activity.”