Mortgage applications fell for the fifth week in a row according to the Mortgage Bankers Association weekly survey. (MBA)
- Overalls applications fell 5.1% for the week continuing to be driven by a drop in those looking to refi.
- The Refinance Index fell 5% from the previous week and was down 20% from the same week one year ago.
- The Unadjusted Purchase Index fell 4% from the previous week but was up 51% from the same week one year ago.
In a reversal from last week, MBA showed an increase in mortgage rates for the week.
- 30-YR Fixed: Increased to 3.36% with points increasing to 0.43.
- 15-YR Fixed:Increased to 2.74% with points decreasing to 0.
Rising rates and inventory lows is undoubtedly putting downward pressure on mortgage applications. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said in a statement, “The rapidly recovering economy and improving job market is generating sizeable home buying demand, but activity in recent weeks is constrained by quicker home-price growth and extremely low inventory.”
We need more houses. It is that simple. I think the announcement earlier this week from the CFPB that they may extend the foreclosure ban until 2022 is a mistake. If someone can’t afford their home they should get out of it. I think many in government are assuming that it would lead to an avalanche of foreclosures. When in reality, the equity that many have in their homes would lead to people just outright selling their homes and walking away from the house with money in their pocket.