With the average rate for a benchmark 30-year mortgage having ticked down to a 2-month low, the volume of applications to secure a purchase mortgage loan for a home in the U.S. ticked up 6 percent last week, rebounding from an atypical drop the week before, according to data from the Mortgage Bankers Association.
That being said, despite the drop in rates, purchase mortgage activity remains down 31 percent on a year-over-year basis, with pending home sales in San Francisco proper still down over 40 percent, the average 30-year rate holding at over 6 percent, and the job market starting to slow.
Decreased sales volume seems likely to continue as many current homeowners enjoy sub 3% fixed rate mortgages.
In April of 2022 we had only just broken 4% 30Y rates, so the YOY comparisons should normalize in 6 months or so.