WASHINGTON, Sept. 4 (Xinhua) -- Mortgage applications decreased in the United States even as mortgage rates remained low, according to a report from Mortgage Bankers Association (MBA) on Wednesday.
For the week ending Aug. 30, MBA's market composite index, a measure of mortgage loan application volume, decreased 3.1 percent from a week earlier.
"Ongoing trade tensions between the U.S. and China led to volatile, yet declining Treasury rates last week, causing the 30-year fixed mortgage rate to fall to 3.87 percent, its lowest level since November 2016," said Joel Kan, associate vice president of economic and industry forecasting of MBA.
Besides, the refinance index, which measures the activity to replace higher rate mortgages with lower rate mortgages, dropped 7 percent from the previous week, according to MBA.
"Despite lower borrowing costs, refinances were down from their recent peak two weeks ago, but still remained over 150 percent higher than last August, when rates were almost a percentage point higher," said Kan.
MBA's purchase index before seasonal adjustment increased 1 percent from the previous week. After removing the influences of predictable seasonal patterns, the seasonally adjusted purchase index increased 4 percent from a week earlier, according to MBA.
"Purchase applications increased 1 percent last week and were 5 percent higher than a year ago. Consumers continue to act on these lower rates, but the volatility in the market is likely leading some borrowers to pause refinancing and buying decisions," Kan added.