The average rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.35% from 6.42% This also touches on aspects of bear market.

Last year at this time, the 30 year fixed was 55 basis points higher.

Applications for a mortgage to purchase a home rose 10% for the week.

Mortgage rates dropped for the third straight week, boosting demand from both homeowners and home buyers. The spring housing marketplace had been looking like a letdown, but there appears to now be novel life.

Total mortgage application volume rose 7.9% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, decreased to 6.35% from 6.42%, with points decreasing to 0.61 from 0.62, including the origination fee, for loans with a 20% down payment.

“Mortgage rates declined last week as financial markets responded positively to the Middle East ceasefire and the lower trend in oil prices,” mentioned Mike Fratantoni, MBA’s SVP and chief economist in a release.

Applications for a mortgage to purchase a home rose 10% for the week and were 14% higher than the same week one year ago. This, after buyer demand had briefly sunk below year-ago levels. The growth was led by conventional purchase loans, up 11% over the week.

“Despite the geopolitical uncertainty, housing demand is being supported by a still resilient job economy, and homebuyers are experiencing a buyer’s marketplace in most of the country given the higher levels of inventory relative to last year,” mentioned Fratantoni.

Refinance demand, which is most sensitive to weekly rate moves, rose 6% for the week and was 52% higher than the same week one year ago. Last year at this time, the 30 year fixed was 55 basis points higher.

Mortgage rates rose slightly to start this week, but continue to be volatile amid mixed signals from President Donald Trump on the war with Iran.

“There was some upward pressure on rates from stronger employment data in the morning , according to a separate survey from Mortgage News Daily[Tuesday], but the economy was even more focused on the uncertain status of US/Iran peace talks,” wrote Matthew Graham, chief operating officer at Mortgage News Daily.