Total mortgage demand surged to a five-month high for the week ending June 21st, according to the weekly report from the Mortgage Bankers Association.
– Total Demand: Total demand rose to an index of 212. This marks a 0.7% increase from the previous week, driven primarily by a rise in purchase demand.
- Purchase Demand: Climbed by 1.2% from the previous week, reaching its highest level since early February.
- Refinance Demand: Was relatively unchanged for the week which dropped to 35.1% of total applications, highlighting a shift in the mortgage landscape.
Mortgage Rates: The 30-year fixed-rate mortgage saw a slight decrease, falling by one basis point to 6.93%, its lowest rate since March 22nd. This rate drop provided a modest relief for potential homebuyers and contributed to the increase in purchase applications.
What They’re Saying: Joel Kan, MBA’s Vice President and Deputy Chief Economist, commented on the recent trends, noting that “Purchase applications did see a small increase after adjusting for the Juneteenth holiday. Government purchase loans, primarily FHA and VA, saw gains of more than 2 percent over the previous week, as homebuyers in those segments sought to take advantage of the recent rate relief.”
Bottom Line: The rise in mortgage demand, particularly in government-backed loans, suggests that homebuyers are eager to capitalize on the favorable interest rates. As the market adjusts to these changes, the coming weeks will be crucial in determining whether this trend continues and what it means for the broader housing market.