Oct. 14 (UPI) -- Mortgage rates in the United States have fallen to a new record low but applications are down, an industry report said Wednesday.
The Mortgage Bankers Association said in its weekly report rates for 30-year fixed-rate mortgages with loans up to $510,000 declined 3% last week.
"Applications for government mortgages offset some of the overall declines by increasing 3%, driven by a solid gain in government purchase applications and an 11% jump in VA refinance applications," Joel Kan, MBA associate vice president of economic and industry forecasting, said in a statement.
Application volume, however, declined 0.7%, it noted. Refinance applications declined 0.3%, but remain 44% higher than they were in October 2019.
"Refinance and purchase activity continued to run well ahead of last year's pace, fueled by record-low rates and strong homebuyer demand," Kan added.
"Housing supply is a challenge for many aspiring buyers, but activity should continue to stay strong for the rest of the year."