Mortgage rates dipped for the second consecutive week. Homebuyers have taken advantage of the recent moderation in rates, which led to a 4 percent increase in purchase applications last week. Although demand has remained steadfast against the backdrop of this year’s higher borrowing costs, it’s important to note that the growth rate of purchase loan balances has moderated so far this year – and particularly since March. This slowdown indicates that buyers are having difficulty stretching to keep up with the pace of home-price growth.

After climbing to their highest level in over seven years, mortgage rates fell over the past week. The 30-year fixed-rate mortgage fell 10 basis points to 4.56 percent. The decline was driven by recent trade and geopolitical issues, which led to a sudden decrease in long-term Treasury yields.

Mortgage rates moved up over the past week to 4.66 percent, their highest level since May 5, 2011 (4.71 percent). Mortgage rates so far in 2018 have had the most sustained increase to start the year in over 40 years. Through May, rates have risen in 15 out of the first 21 weeks (71 percent), which is the highest share since Freddie Mac began tracking this data for a full year in 1972.