Refinances accounted for 12% of the loans for the week, increasing by 116% from 2018. Total mortgage application volume increased 5.3% from the prior week, with volume surging by 46.5% from 2018. 
According to the Mortgage Bankers Association [MBA], the average contract interest rate for the 30-year fixed-rate mortgage with conforming loan balances ($484,350 or less) decreased slightly to 4.01% from 4.08%. That rate was 83 basis points higher one year ago. “The 30-year fixed rate mortgage fell to its lowest level since November 2016. We fully expect that refinance volume will jump even higher this week given the further drop in rates,” said Mike Fratantoni, MBA senior vice president and chief economist.
New mortgage applications to purchase a home did not reflect a jump, falling 2% for the week, even though rates have fallen for four straight weeks. Still, the purchase volume came in at 7% higher than in 2018.
There is some concern that the inventory shortage, the inability of builders to build homes for the first-time buyer and certain rocky trends, including the trade war and Brexit, giving buyers some pause.
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