Mortgage loan application volumes to either purchase or refinance a home in the U.S. dropped 6.9 percent on a seasonally adjusted basis over the past week and were down 7 percent in the absolute, according to the Mortgage Bankers Association.
While the overall drop was driven by a 10 percent decline in applications to refinance, purchase mortgage activity ticked down another 2 percent over the past week and was 13 percent lower than at the same time last year, with application volumes for new home purchases having dropped 17 percent on a year-over-year basis last month despite a 26 percent increase in inventory and the most new homes on the market in over a decade.
And while the benchmark mortgage rate jumped back above 3 percent last week, the current 30-year rate is still (less than) half its long-term average and 20 percent cheaper than the average rate over the past decade with expectations for a rate hike having accelerated.
Comments from Plugged-In Readers
I am refinancing my 3 rentals to 2.99% on 20 year fixed. I think these rates are low compared to historically, but then I think some day we will hit 1%…
Mortgage rates are not going up any time soon. Prices are so high now mortgages will be subsidized by the Democrats. When republicans take over in 7 years and end the subsidy the market will crash.
I disagree. The Fed will need to hike rates in order to get inflation under control, mortgage rates will follow.
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