Mortgage demand ticked up for the second week in a row, rising 1.7% to an index level of 195.6 for the week ending November 15, according to the Mortgage Bankers Association (MBA).
- Despite the uptick, overall demand remains near seven-month lows, reflecting ongoing challenges in the housing market.
Up Across The Board: Purchase applications increased 2.0% from the prior week, extending gains to 4.0% above the nine-month low reached two weeks ago.
- Refinance applications rose 1.7% after falling to a five-month low the previous week.
Rates Rise: The average contract interest rate for a 30-year fixed-rate mortgage edged up to 6.9%, a four-basis-point increase from the previous week.
- Rates have now climbed in seven of the last eight weeks and are 77 basis points higher than the two-year low reached two months ago.
What They’re Saying: Joel Kan, MBA’s Deputy Chief Economist noted the rise in FHA mortgge demand. “The pickup in purchase applications was driven by conventional and FHA loans, with FHA purchase applications seeing a 7 percent increase. For-sale inventory has loosened in some markets and some potential buyers have been able to take advantage of increasing supply and lower FHA rates, which were down slightly in comparison to the conforming 30-year fixed rate.”
Bottom Line: With rates back on the climb and home prices still elevated buyers and homeowners face increasing affordability pressures, keeping mortgage demand constrained despite recent gains.
