Demand for U.S. mortgages continued to decline last week with a 1.4% fall, even though interest rates on 30 year U.S. mortgages are at an incredibly low 4.44%, according to the Mortgage Bankers Association.
What might be even more alarming is that 81.1% of all mortgage activity is in refinancing, not in new home purchases. That’s an increase from 80.5% the week previous.
While refinancing is a good thing for consumers taking advantage of low interest rates, it is worrying that home purchases remain so low and that they are continuing to fall as share of declining mortgage demand.
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