Mortgage demand saw a slight 1.1% drop for the week ending September 24th, according to the Mortgage Bankers Association weekly survey…(MBA)
- The refinance index fell 1% and was 0.4 percent higher than the same week one year ago.
- The purchase index also fell 1% for the week and and was 12% lower than the same week one year ago.
NOTE: The refinance share of mortgage activity increased to 66.4 percent of total applications from 66.2 percent the previous week.
Mortgage rates ticked upward for the first time in 6 weeks…
- 30-YR FIXED: The average contract interest rate increased 7 basis points to 3.10% from the previous week and was 5 basis points than the same time one year ago.
- 15-YR FIXED: The average contract interest rate increase 9 basis points to 2.43% from the previous week but was down 21 basis points from the same time one year ago.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said that economic optimism pushed rates higher for the week…
- “Increased optimism about the strength of the economy pushed Treasury yields higher following last week’s FOMC meeting. Mortgage rates in response rose across all loan types, with the benchmark 30-year fixed rate reaching its highest level since early July 2021…”
NOTE: The average loan size for a purchase application reached $410,000, its highest level since May 2021