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Lower interest rates bring slight rise in homeowners looking to refinance

Lower interest rates bring slight rise in homeowners looking to refinance
The average rate for 30-year fixed-rate mortgages under $647,200 slid last week from 5.98% to 5.84%, Wednesday's industry report said. File Photo by Alexis C. Glenn/UPI | License Photo

June 29 (UPI) -- Mortgage rates in the United States have gone down for the first time in a few weeks, an industry report said on Wednesday -- but overall demand didn't pick up or decline.

The Mortgage Bankers Association said in its weekly update that interest rates dipped slightly after three straight weeks of increases.

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The average rate for 30-year fixed-rate mortgages under $647,200 slid last week from 5.98% to 5.84%, the MBA said.

The decrease in rates coincided with a slight increase in activity among homeowners who want to refinance. However, overall applications were mostly flat compared to the previous week, the report said.

"Mortgage rates continue to experience large swings," Joel Kan, MBA associate vice president of economic and industry forecasting, said in a statement. "[Interest] rates are still significantly higher than they were a year ago, when the 30-year fixed rate was at 3.2%."

Although applications to refinance increased about 2%, they were far off from the level they were at a year ago.

"The decline in mortgage rates led to a slight increase in refinancing, driven by an uptick in conventional loans. However, refinances are still 80% lower than a year ago and over 60 percent below the historical average," Kan added.

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This week, interest rates started to rebound and are again close to 6%.

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