SHARE
  • Interest rates on home loans moved higher again last week, causing both homebuyers and homeowners to back away from the mortgage market.
  • Total mortgage application volume fell 2.6 percent for the week on a seasonally adjusted basis.
  • Refinance volume is 38 percent lower than the same week one year ago, when interest rates were lower.

Interest rates on home loans moved higher again last week, causing both homebuyers and homeowners to back away from the mortgage market.

 

Total mortgage application volume fell 2.6 percent for the week. The weekly seasonally adjusted application index from the Mortgage Bankers Association is now 20 percent lower than the same week a year ago.

Refinance applications, which are highly rate-sensitive, have been falling for the past few weeks and dipped 5 percent last week. Refinance volume is 38 percent lower than a year ago, when interest rates were lower. Refinance activity has fallen 20 percent since September, when rates hit a 2017 low.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased last week to its highest level since July, 4.22 percent, from 4.18 percent, with points increasing to 0.43 from 0.42 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.

LEAVE A REPLY

Please enter your comment!
Please enter your name here