According to FloridaRealtors.org, more borrowers took advantage of low mortgage rates recently but housing experts say mortgage applications should be much higher.
Total mortgage applications rose 2.8 percent on a seasonally adjusted basis compared to the previous week, according to the Mortgage Bankers Association. Most of that increase was due to an uptick in refinance applications, which increased 4 percent week over week.
At these rate levels, there are borrowers who still stand to benefit, but there are many homeowners who have already taken advantage of refinancing and are not yet incentivized to do it again.
MBA reports the average 30-year fixed rate mortgage held steady last week at 3.67 percent. Meanwhile, applications last week for home purchases rose slightly by 1 percent and are 5 percent higher when compared a week ago.
The weak level shows few home buyers in the market, likely due to the short supply of homes for sale and higher prices.
Mortgage applications have been slowing over the past few months. As the economy reaches full employment, the pace of job growth is slowing, and this will slow growth in purchase activity as well. However, growth in home sales is expected.
