Last week, the average interest rate for 30-year fixed-rate mortgage contracts hit its highest level since September 2013, and total application volume decreased 2.5 percent, according to the Mortgage Bankers Association.
The MBA's latest seasonally-adjusted report showed that the refinance share of mortgage activity was at a record low for the week, down to 36.5 percent of all applications. Week-over-week, refinance volume dropped 4 percent, and year-over-year, refinances fell 15 percent, CNBC reports. The share of adjustable-rate mortgage activity rose to 6.7 percent of all applications.
Mortgage rates have not moved at all this week, as financial markets were closed in other countries for the May Day holiday. That could change, with the monthly employment report at the end of this week and the Federal Reserve meeting Wednesday. "While the Fed is not even remotely expected to hike rates again at this meeting, investors are always tuned in to the verbiage of the announcement in case it offers clues about the future policy path," said Matthew Graham, chief operating officer at Mortgage News Daily.
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