We sold real estate signs in front of a small old house in Queens, New York.
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Mortgage fees were barely announced last week, but despite strong spring headwinds, home buyers could be back in the market.
However, demand for refinancing has been weak, but according to the Mortgage Bankers Association’s Seasonal Adjustment Index, the total application volume for the past week fell by 2% from last week.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances fell from 6.72% to 6.71%, below $806,500, with points on a 20% down payment loan from 0.64 to 0.60.
“The market remains focused on potential trade policy changes, and the Fed holds its current level (AT),” MBA economist Joel Kang wrote in the release.
Mortgage applications to buy mortgages rose 1% a week, 7% higher than the same week a year ago. That small profit was enough to put demand at the highest levels in nearly two months after a few weeks of decline.
“Last week’s purchase activity was driven primarily by a 6% increase in FHA applications. The combination of loose housing inventory and slower mortgage rates provided more opportunities for this buyer segment,” Kan said.
Mortgage refinance applications have dropped by 5% to the lowest level in one month since the previous week. They were 63% higher than the same week a year ago. Last year, the mortgage rate rose by 22 basis points.
Given the record mortgage rate just three years ago, few valuable people can benefit from today’s refinance, but people who may have bought a home at a higher rate in the past two years are now using it. The overall volume is very low, so the annual comparison is very large.
