Mortgage applications to purchase a home fell by 10% week-over-week in mid-April, according to the Mortgage Bankers Association.

 

Mortgage applications to purchase a home fell by 10% week-over-week in mid-April, according to the Mortgage Bankers Association.   The average contract interest rate for a 30-year fixed-rate mortgage rose from 6.3% to 6.43% last week. Average 30-year mortgage rates are down from peaks of over 7% in March and October, but are higher than in previous years. Buyer demand is down 36% from a year ago, when 30-year fixed-rate mortgages averaged 5.2%. The 10% drop and an increase in the average purchase loan size suggest that first-time home buyers are withdrawing from the market, an analyst said. Applications to refinance a loan decreased by 6% from the previous week and 56% from a year ago.