For the first time in three weeks demand for mortgage applications fall, according to the weekly survey from the Mortgage Bankers Association (MBA)
Total loan applications fell 4.2% lead by a decline in demand for refis…
- REFIS: The Refinance Index fell 7% from the previous week and was 9% lower when compared to the same time a year ago.
- PURCHASE: The unadjusted Purchase Index saw a slight 1% increase compared with the previous week but was down 4% when compared to the same time a year ago.
The decline in refis also caused their share of mortgage activity to drop as well. Refinances made 61.4% of total applications which is down from the 63.3% from the previous week.
An explanation for the drop in demand could be explained by the increase in mortgage rates…
- The average contract interest rate for 30-YR fixed increased 3 basis points to 3.18%.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, points out the purchases are up, but are still being held back by inventory shortages. “Purchase applications increased for the second time in three weeks…Demand is robust throughout the country, but homebuyers continue to be held back by the lack of homes for sale and rapidly increasing home prices.”