US Mortgage Applications See Significant Weekly Decline

In a recent survey published by the Mortgage Bankers Association (MBA), it was revealed that mortgage applications in the United States experienced a notable weekly decline of 4.2% in the seven days ending April 25.

Interest Rates and Points Adjustments

The survey further detailed that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $806,500 or less slightly decreased to 6.89%, down from 6.90%. Concurrently, the points increased to 0.67 from 0.66, encompassing the origination fee for loans with a 20% down payment.

Economic Uncertainty Impacts Mortgage Activity

"Mortgage application activity, particularly for home purchases, continues to be subdued by broader economic uncertainty and signs of labor market weakness, dropping to the slowest pace since February," commented Joel Kan, MBA’s vice president and deputy chief economist.