Weekly mortgage demand falls 17% after rates hit highest since August | Wilnesh News

Mortgage rates rose for a third straight week last week, hitting their highest level since August. This has led to a significant retreat in demand from current homeowners and potential homebuyers. Total mortgage applications fell 17% last week from the previous week, according to the Mortgage Bankers Association’s Seasonally Adjusted Index.

The average contract interest rate for a 30-year fixed-rate mortgage with qualifying loan balance ($766,550 or less) increased from 6.36% to 6.52%, and the payment for loans with 20% down increased from 0.62 (including origination fee) to 0.65.

Refinancing demand, which is most sensitive to weekly interest rate movements, fell the most, falling 26% weekly. However, that’s still 111% higher than the same week a year ago; rates were 118 basis points higher at this time a year ago, so anyone who bought a home last year could benefit from refinancing now. The proportion of refinancing applications fell below 50% for the first time in more than a month.

Mortgage applications for home purchases fell 7% this week, but were 7% higher than the same week a year ago. More supply now on the market provides opportunities for some buyers.

“Demand from potential first-time homebuyers has remained somewhat unchanged. Despite rising interest rates, there has been little change in FHA purchase applications as some first-time homebuyers remain on the books due to improved housing inventory conditions. in the market.

Rates haven’t changed much to start the week, especially considering Monday is a federal holiday. The recent rise in mortgage rates may have slowed the refinancing recovery, but homebuyers may be less concerned about today’s rates and more concerned about the state of the economy in the coming months. Some say they will delay making such a major purchase until after the November election.