A home mortgage sign on a Wells Fargo branch in Brooklyn, New York.
An unexpected decline in mortgage interest rates had homeowners calling their lenders last week, looking to save money on their monthly payments.
Refinance demand surged, pushing total mortgage application volume up 5.2% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 69% higher than the same week one year ago, when interest rates were considerably higher.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 3.90% from 3.99%, with points falling to 0.37…