Mortgage Rates Dip to Lowest Level in Almost Two Months
Mortgage rates fell for the second straight week, dropping to their lowest level in almost two months last week and prompting a slight resurgence in applications for both refinancing and home purchases.
In the week ending April 16, the average rate for a 30-year fixed mortgage dipped to 3.20% from 3.27% the previous week, data released by the Mortgage Bankers Association (MBA) Wednesday showed. An index measuring the volume of applications from borrowers planning to refinance surged 10%—the first weekly increase since February—while an index of applications to buy a home, a leading indicator of real estate sales, increased 6%.
The housing market has boomed during the COVID-19 pandemic, fueled by mortgage rates hitting new record lows last year and eventually bottoming at 2.85% in December. A recent upswing in rates had started to put a damper on demand for home loans, but the trajectory has reversed itself a bit over the last two weeks.