Mortgage Rates Fall Even With Lower Rates

The demand for mortgages fell last week even with rate dipping slightly. The Mortgage Bankers

Association index of loan application volume decreased 2.8% last week, compared to the week before.

While the number of loan applications was decreasing the average contract interest rate for 30-year fixed-rate mortgages slid to 4.94% with fees decreasing to 0.94 for people borrowing 80% of the value of their house or condo.

The refinance index fell less than 1 percent, but the purchase index dropped 6.2%. The four-week moving average index is looking better, with the index down only 0.6% for purchase loans and is up 6.8% for refinances.