The Mortgage Bankers Association's index shows that the volume of mortgage applications barely moved last week.
Last week, rates dropped a bit, but they are still near a 22-year high.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 7.05% from 7.11%, with points decreasing to 0.73 from 0.88 for loans with a 20% down payment. The rate was the same a year ago.
The drop was small enough to make a difference on demand. The applications were still 85% lower than they were a year ago. Few qualified borrowers don't already have a rate lower than what is being offered.
The number of mortgage applications to buy a home fell for the week. Homebuilders and real estate agents say buyer traffic has slowed. Today's buyers don't see a sense of urgency, and some may be waiting for rates to pull back more
Rates for all other loan types were more than a percentage point higher than they were a year ago. The elevated rates continue to put pressure on both purchase and refinance activity and have added to the ongoing affordability challenges impacting the broader housing market.
According to Mortgage News Daily, mortgage rates were slightly higher this week, but all eyes are on the Federal Reserve. While the Fed is widely expected to raise its funds rate by 0.75 percentage point, investors are focused on what it will mean for future rate moves The Fed is about to end its rate hikes, according to some.
Matthew Graham, chief operating officer at Mortgage News Daily, said that throwing that bone to the market would be good for rates. Rates are going to have a bad Wednesday if they completely shy away from it. The volatility risk is high.
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