The contract interest rate for a 5/1 adjustable-rate mortgage loan decreased from 3.33% to 3.27%.
Mortgage rates have fallen in step with U.S. Treasury yields, which hit five-month lows on Tuesday, stemming from a wave of safe-haven bids for U.S. government debt due to geopolitical tensions with Syria and North Korea, and uncertain outcome of the French presidential election on Sunday. The 30-year fixed rate hasn't dipped below 4 percent since November.
It was the fourth consecutive week that 30-year mortgage rates have declined.
10 year loans can be had for 3.125% and April of 3.331% today.
The borrowing cost on 30-year mortgages, the most widely held type of US home loan, averaged 3.97 percent in the week ended April 20, the lowest since 3.94 percent in the November 17 week.
The Washington-based industry group said its measure on mortgage applications decreased 1.8 percent to a reading of 395.6 in the week ended April 14.
Bankrate.com, which puts out a weekly mortgage rate trend index, found that the experts it surveyed were nearly evenly divided on where rates are headed in the coming week.
For existing homeowners exploring a home equity line of credit (HELOC) or equity loan, there's no change in either rates today.
The Mortgage Collaborative network is more than 100 lenders strong, with an annual origination volume of $156 billion. The question is will this rally continue, or will rates quickly revert to the higher levels of just a few weeks ago. "But if first quarter GDP disappoints next Friday, this drop in rates could have further to go". The purchase index fell 3 percent.
The Refinance Index increased 0.2 percent from the previous week. "Today, the Mortgage Bankers Association (MBA) presented a proposal that is a very thoughtful and constructive contribution to the housing finance reform debate", said Leo Pareja, president of The National Association of Hispanic Real Estate Professionals (NAHREP).