Elevated rates and rising prices continue to put downward pressure on mortgage demand. Total demand fell 2.3% for the week, according to the Mortgage Bankers Association’s weekly survey…(MBA)
- PURCHASES: The Purchase Index slipped 1.0% for the week and was down 14% from the same time last year.
- REFIS: The Refinance Index continues to fall with a 5.0% drop this week which puts the index down 75% from one year ago.
NOTE: The refinance share of mortgage activity decreased to 31.5% of total applications from 32.3% the previous week. The adjustable-rate mortgage share of activity decreased to 8.7% of total applications.
Mortgage rates fell again this week which means they have now fallen three weeks in a row…
- 30-YR FIXED: The average contract interest rate fell 13 basis points to 5.33%, this is up 216 basis points from one year ago.
- 15-YR FIXED: The average contract interest rate also fell 13 basis points to 4.59%, this up 197 basis points from one year ago.
- 5/1 ARM: The average contract interest rate fell 3 basis points to 4.46%, this is up 189 basis points from one year ago.
Joel Kan, an MBA economist, said demand is the lowest it has been in almost 4 years…
- “Mortgage rates fell for the fourth time in five weeks, as concerns of weaker economic growth and the recent stock market sell-off drove Treasury yields lower. Mortgage applications decreased to the lowest level since December 2018, as the purchase market continues to struggle with supply and affordability challenges,”
