U.S. mortgage rates fell for a second consecutive week last week, with the average contract interest rate for a 30-year fixed-rate mortgage decreasing from 7.41% to 7.37%. However, borrower demand saw only a slight rebound, with total application volume rising by 3.4% week-over-week. In an effort to save money, more borrowers opted for riskier adjustable-rate mortgages (ARMs), whose share of applications increased to 11.3%, the highest level in over a year. Refinance applications rose by 3% week-over-week but were still down 61% year-over-year; purchase loan applications increased by 4% week-over-week, but were down 18% year-over-year.