Given all the recent positive news about the housing market, it would be reasonable to think that demand for mortgages was rising. It is not. CNBC's Diana Olick reports:
Despite strong buyer demand in the housing market, mortgage applications decreased 4.1% last week from the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association.
Despite the drop, they are still 42% higher than the same week one year ago.
Both applications to refinance a loan and to purchase a home fell, as interest rates maintained a slow climb. Refinance applications decreased 4% from the previous week, seasonally adjusted, and purchase applications decreased 5%. Applications for government loans, which require very low down payments, fell 6% for the week to the lowest level since November.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 3.85%, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80% loan-to-value ratio loans. Rates for other loan products, however, rose.