As investors increasingly snatch up government bonds, average mortgage rates last week hit a lowest level since November.
The average rate on a 30-year fixed-rate mortgage dropped to 4.47 percent from 4.52 percent week-over-week, according to data from the Mortgage Bankers Association. Applications for refinancing a home increased 3 percent week-over-week while still sitting at a low level.
“We are eyeing 4.0% on the primary mortgage rate to be a bellwether for increased originator supply,” analyst Walter Schmidt of FTN Financial told the Wall Street Journal.
To boost refinancing applications, market experts said the mortgage rates would need to reach 4 percent.