The 30-year fixed-rate mortgage dipped to 3.66 percent, according to the Sept. 28 Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association (MBA), effectively erasing last week’s increase.
Rates for jumbo-loan and Federal Housing Administration-backed mortgages also decreased. Jumbo-loan rates dropped to 3.64 percent, from 3.69 percent, and Federal Housing Administration-backed rates dropped to 3.52 percent, from 3.56 percent.
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Mortgage applications went down slightly – seven tenths of a percent – but went down nonetheless for the period ending Sept. 16.
The fall of mortgage applications for the second consecutive week is an indicator of a lackluster market and one confused by a to-hike or not-to-hike message from the Federal Reserve about interest rates. According to NBCNews.com, the Fed still is stalling on answering the question, at least for now.
“The committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives,” the Federal Open Market Committee said in a statement following its annual policy meeting.
The refinancing market had a quiet week, too, with activity decreasing to 62.7 percent, from 63.1 percent. The figures refer to the number of homeowners applying for the option when submitting loan documents.
Headquartered in Washington D.C., the Mortgage Bankers Association is the national association representing the real-estate finance industry. Since 1990, it has conducted a weekly survey that covers more than 75 percent of all U.S. residential-mortgage applications. Respondents include commercial banks, mortgage bankers and thrifts.