Despite a small decrease in mortgage rates, homebuyers are showing little enthusiasm for the spring housing market. Rising home prices and limited affordability continue to discourage potential buyers.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.97% from 7.02%
"The average loan size for a purchase loan has increased since the start of the year and continued that trend last week with weaker government purchase activity, which reached $447,300, the highest level since October 2024," said Joel Kan, vice president and deputy chief economist at the MBA.The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.97% from 7.02%, with points increasing to 0.64 from 0.
Applications to refinance a home loan responded to that small drop, rising 12% from the previous week and 17% from the same week a year ago. The percentage increases are large, but much of that is due to volumes being so low. Most borrowers today have rates well below what is being offered today.Mortgage applications to buy a home are now 39% lower than they were in February 2019, pre-pandemic.
MORTGAGE RATES HOMEBUYERS HOUSING MARKET HOME PRICES AFFORDABILITY
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