Mortgage Applications in Rut, Even With Sub-5% Rates

Mortgage applications declined again for the week ending February 25, even as average 30-year fixed-rate interest rates fell below 5 percent, according to the Mortgage Bankers Association. A drop in both new-purchase mortgages and refinance applications -- indicated by a 6.5 percent drop in MBAA's market composite index -- indicates that the housing slump persists, independent of interest rates. With the average 30-year rate at 4.84 percent, its third drop in three weeks, it seems that even rock-bottom mortgage rates can rescue the housing market from its current langor.