A single-family home in a residential area of San Marcos, Texas.
Jordan Vonderhaar | Bloomberg | Getty Images
After being flat the previous week, demand for mortgages increased last week even as mortgage rates rose for the fourth consecutive week. Total application volume increased 1.7% from the previous 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 ($766,550 or less) increased from 6.86% to 6.90%, and points for loans that declined 20% increased from 0.60 to 0.70 (including origination fees). ). payment. This was the highest level since July.
The number of applications for mortgages to buy homes increased by 2% for the week, but fell by 1% compared to the same week last year. Purchase demand was driven by conventional and FHA loans, with FHA purchase applications increasing 7%.
MBA Economist Joel Kang said, “Inventory for sale has decreased in some markets, and some potential buyers have seen a slight drop in interest rates compared to the 30-year fixed rate, which is compatible with increased supply. “We were able to take advantage of lower FHA interest rates.” , in release.
The number of mortgage refinance applications increased by 2% for the week, and by 43% compared to the same week last year. Demand was driven by a 10% increase in VA applications.
Mortgage rates have remained roughly flat so far this week, according to a separate Mortgage News Daily survey. It rose on Monday but fell on Tuesday following news that the United States had authorized Ukraine to use long-range missiles to attack Russia and later formally changed its doctrine on the use of nuclear weapons. Bond yields have fallen due to a so-called flight to safety by investors.
“The improvement in mortgage rates was not at all overwhelming compared to the news headlines. Perhaps this is not the first such threat from Russia, or perhaps someone pressed the red button on the ‘mutually assured destruction’ machine. “This could be because traders are skeptical about what they want to push,” wrote Matthew Graham, chief operating officer at Mortgage News Daily.
