A sign was posted in front of a home for sale in San Rafael, California on August 7, 2024.
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Mortgage fees fell slightly last week, but so did mortgage requests as home affordability continues to put potential buyers aside.
Total mortgage applications fell 6.6% that week, according to the Mortgage Bankers Association’s Seasonally Adjusted Index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances (below $766,550) fell from 6.95% to 6.93%, with points increasing from 0.64 (including original fees) to 0.66, falling 20%. did. payment.
“The market unexpectedly ruled out strong inflation data, which led to an average decline in mortgage rates. Despite the decline in mortgage rates, mortgage applications have declined to the slowest pace since the beginning of the year. “We did,” said MBA economist Joel Kang.
Mortgage refinance applications were on the rise, but fell 7% for the week, but 39% higher than the same week a year ago. The rate of change each week is increased simply because the overall capacity of refinance is very low. The majority of borrowers today have mortgages with significantly lower interest rates than what is currently being offered.
Mortgage applications to buy mortgages fell 6% in a week, but 7% higher than last year. Home affordability continues to weigh potential buyers, and economic uncertainty, particularly regarding the impact of potential tariffs, is only increasing pressure.
“Buyers remained on the fence, so purchase requests fell that week, but loosening inventory could help support activities in the coming months,” Kan added. Ta.
Mortgage rates have moved slightly higher to begin this week, but the weeks that have been shortened to holidays tend to see more volatility in the bond market.
