An “Open House” flag flies in front of a home for sale in Alhambra, California on January 18, 2024.
Frederick J. Brown | AFP | Getty Images
Mortgage rates rose again last week, drawing demand from both the refinance and purchase markets. Total mortgage application volume fell 10.8% compared to 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) decreased from 0.69 to 0.68 points, including loan origination fees, which fell 20%, and increased from 6.73% to 6.81%. did. payment.
“Applications declined for the sixth straight week, purchase activity fell to its lowest level since mid-August, and refinance activity fell to its lowest level since May,” MBA Economist Joel Kang said in a release. said.
Mortgage refinance applications, which are most sensitive to weekly interest rate changes, fell 19% for the week, but rose 48% from the same week last year. At this time last year, 30-year fixed rates were 80 basis points higher.
“The average loan amount for refinance applications was below $300,000, as borrowers with larger loan amounts tend to be more sensitive to changes in mortgage rates,” Kang added.
The number of applications for mortgages to buy homes fell by 5% for the week, and was up just 2% from the same week last year. Home-buying activity has picked up in recent months as supply has increased on the market and home prices have fallen slightly. But mortgage rates are again weighing on some buyers, and concerns about the economy and election may keep some on the sidelines for now.
Mortgage rates have been essentially flat this week, and whatever the outcome of the election, regardless of the outcome, is sure to have an impact on the recent volatility. Additionally, the Fed is expected to announce its latest interest rate decisions on Thursday.
