The sale sign will be in front of your home in Miami, Florida on May 12, 2025.
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Economic uncertainty at home or military conflicts abroad – each taken alone – usually have a major impact on the bond market. But even now, they have done little to move their mortgage fees.
Last week, the conforming loan balance (average contract interest rate for a 30-year fixed-rate mortgage with a conforming loan balance of less than $806,500) rose from 6.84% to 6.88%, with points falling to 0.63, including the origin fee for a 20% down payment loan. That’s according to the Mortgage Banks Association.
“The combination of ongoing conflict in the Middle East, current economic situation and last week’s FOMC meeting led to a slightly lower financial rate for the Treasury on average. However, mortgage rates remained high, but remained within the same narrow range.”
Since early April, the rates have moved below about 7%, with rates in the approximately 25 basis points range. It offers little incentive to home buyers who are still facing excessively inflated home prices.
Mortgage applications to buy homes fell 0.4% compared to last week, according to the MBA’s seasonally adjusted index. Purchase demand was 11% higher than the same week a year ago, but overall it is historically low.
“The average loan size for purchase applications has decreased to $436,300, the lowest level since January 2025.
Mortgage refinance applications rose 3% in a week, 29% higher than the same week a year ago. Last year’s fixed 30-year average rate was just five basis points. Again, the volume is very low, so even small changes can result in large percentage movements.
