After a big jump last week, mortgage demand fell 1.2% thanks to rising rates, according to the Mortgage Bankers Association weekly survey…(MBA)
- PURCHASES: The Purchase Index was actually up 1.0% for the week but was down 8% from the same time last year.
- REFIS: The Refinance Index was down 3.0% and was down 49% from the same time last year.
NOTE: The refinance share of mortgage activity has decreased to 48.4% of total applications from 49.5% the previous week.
After a short reprieve, mortgage rates were back on the climb for the week ending March 11th, 2022…
- 30-YR FIXED: The average contract interest rate jumped 16 basis points to 4.27%, this is up
- 15-YR FIXED: The average contract interest rate also saw a 16 basis point jump to 3.55%, this is up
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, noted that average loan size continues to remain elevated…
- “Purchase applications slightly increased, with both conventional and VA loan applications seeing gains. The average purchase application loan size remained elevated at $453,200 – the second-highest amount in MBA’s survey.”
Nothing too surprising this week. Everyone knew rates would reverse and start trending upward which is why we saw such a big jump in demand. People wanted to take advantage of the short reprieve. However, it was interesting that despite rising rates and loan values purchase demand continues to remain positive. More proof that demand for homes remains strong.
