Mortgage applications dropped 9% in the week ending January 27, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey published on Wednesday. The 30-year fixed rate declined four basis points to 6.18% the same week.
The report noted that the Refinance Index fell 7% and was 80% below the same week a year ago. Meanwhile, the seasonally adjusted Purchase Index edged down 10% from the last week.
"Mortgage rates declined for the fourth straight week and have now fallen almost 40 basis points over the past month," stressed Joel Kan, MBA's Vice President, and Deputy Chief Economist. "The spread between mortgage rates and the 10-year Treasury has been abnormally wide since early 2022. Further narrowing of that spread is expected to put downward pressure on mortgage rates in the coming months."
