Now might a good time to fall in love with a home as mortgage rates resume their slide.
The benchmark 30-year fixed mortgage rate dipped to 4.57 percent, down from 4.62 percent a week ago, according to Bankrate.com’s latest survey of the nation’s largest mortgage lenders. Meanwhile, the average 15-year fixed mortgage rate inched up two basis points to 3.98 percent and the average adjustable mortgage rate fell five basis points to 4.22 percent.
Although rates are moving lower, mortgage activity is waning after a brisk start to the year. Total mortgage applications fell 2.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s applications survey for the week ending Feb. 1.
Refinance applications pulled back slightly by 0.3 percent from the previous week, but a 5 percent drop in purchase applications led the overall decline in activity, the MBA reported.
“Despite more favorable borrowing costs, and after a three-week surge in activity, purchase applications have slowed over the past two weeks, and are now almost 2 percent lower than a year ago,” said Joel Kan, MBA’s associate vice president of industry surveys and forecasts, in a statement. “However, moderating price gains and the strong job market, including evidence of faster wage growth, should help purchase growth going forward.”
Deborah Kearns
Mortgage reporter
February 7, 2019