US mortgage rates are down for the second week in a row, causing consumers to return to mortgage brokers again. However, a growing percentage of applicants are looking for riskier loans, which offer lower interest rates. According to the seasonally adjusted index issued by the Mortgage Bankers Association, total mortgage applications increased last week by 3.4% compared to the previous week. In contrast, the average contractual interest rate for 30-year fixed-rate mortgages - which are included in the maximum approved loan category of $832,750 - dropped from 7.41% to 7.37%. The association's vice president and deputy chief economist, Joel Kahn, said in a statement: "The drop in interest rates provided some relief to borrowers, leading to a slight increase in applications, particularly traditional applications." "Mortgage interest rates are still more than 1 percent higher than the same period last year, and most current homeowners are enjoying much lower interest rates than those prevailing in today's market," Kahn adds.

US mortgage rates are down for the second week in a row, causing consumers to return to mortgage brokers again. However, a growing percentage of applicants are looking for riskier loans, which offer lower interest rates. According to the seasonally adjusted index issued by the Mortgage Bankers Association, total mortgage applications increased last week by 3.4% compared to the previous week. In contrast, the average contractual interest rate for 30-year fixed-rate mortgages - which are included in the maximum approved loan category of $832,750 - dropped from 7.41% to 7.37%. The association's vice president and deputy chief economist, Joel Kahn, said in a statement: "The drop in interest rates provided some relief to borrowers, leading to a slight increase in applications, particularly traditional applications." "Mortgage interest rates are still more than 1 percent higher than the same period last year, and most current homeowners are enjoying much lower interest rates than those prevailing in today's market," Kahn adds.