Mortgage rates fell for the second straight week, but more borrowers still sought savings in riskier loans

Mortgage rates fell for the second straight week, and that finally brought consumers back to their brokers. A growing share, however, applied for riskier loans at even lower rates. Total mortgage application volume rose 3.4% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, decreased to 7.37% from 7.41%, with points increasing to 0.76 from 0.75, including the origination fee, for loans with a 20% down payment.