Mortgage applications in the United States dropped last week even though mortgages rates remained lower, Mortgage Bankers Association (MBA) said on Wednesday.
For the week ending April 26, MBA’s market composite index, a measure of mortgage loan application volume, dropped 4.3 percent from one week earlier.
The drop in mortgage applications came despite lower mortgage rates, which could have led to an increase in application volume.
“Mortgage rates were lower last week, with the 30-year fixed rate declining to 4.42 percent, as concerns over global growth, particularly in Germany, outweighed more positive domestic news on first quarter GDP growth and business investment,” said Joel Kan, associate vice president of economic and industry forecasting of MBA.
The U.S. Federal Home Loan Mortgage Corporation, said on Monday the 30-year fixed-rate mortgage is expected to average 4.3 percent for 2019, which is below last year’s average of 4.6 percent.
MBA’s data also showed that the refinance index, a measurement of mortgage refinance activity, dropped 5 percent from the previous week.
The seasonally adjusted purchase index also decreased 4 percent from one week earlier, according to MBA.