Despite a slight increase in mortgage rates, applications for home purchases continue to trend upward.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 6.75% from 6.67%. Applications for a mortgage to purchase a home increased 1% for the week and were 6% higher than the same week one year ago.Total application volume fell 0.7% compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. That was the first decline in five weeks.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 6.75% from 6.67%, with points remaining unchanged at 0.66 (including the origination fee) for loans with a 20% down payment. That rate was just 8 basis points higher the same week one year ago. The driver of the drop was refinance demand. It fell 3% for the week but was still 41% higher than the same week one year ago. While mortgage rates aren't that much lower now than they were a year ago, it may be that refinance volume is so low in general that any slight move makes for a large comparison. Applications for a mortgage to purchase a home increased 1% for the week and were 6% higher than the same week one year ago. 'Conventional and VA purchase applications drove this week's increase in purchase activity on a weekly and annual basis. Buyers remained active in the purchase market, helped by gradually improving inventory conditions and a more positive outlook on the economy and job market,' wrote Joel Kan, MBA's vice president and deputy chief economist.Mortgage rates have been essentially flat to start this week, according to a separate survey from Mortgage News Daily, as the market awaits the Federal Reserve meeting Wednesday. A rate cut is expected, but some analysts say it may be the last one for a whil
MORTGAGE RATES HOME PURCHASES REFINANCE DEMAND FEDERAL RESERVE ECONOMY
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