Rising rates are starting to impact mortgage demand, according to the latest data from the Mortgage Bankers Association…(MBA)
- REFI: The Refinance Index fell 10% from the previous week and was 16% lower than the same week one year ago.
- PURCHASE: The purchase index fell 2% compared with the previous week and was 13% lower than the same week one year ago.
TOTAL DEMAND: The market composite index fell 6.9% on a seasonally adjusted basis from one week earlier.
For the second week in a row, rate were up across the board with the 30-year continuing to move at a faster pace than the 15-year…
- 30-YR FIXED: The average contract interest rate increased 4 basis points to 3.14% which is 13 basis points higher than the same time one year ago.
- 15-YR FIXED: The average contract interest rate increased 2 basis points 2.45% which is still 14 basis points lower than one year ago.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, notes that reduced activity did nothing to lower the overall loan balance…
- “Government purchase applications were up over 1 percent, but that was still not enough to bring down the average loan balance of $410,000. With home-price appreciation and sales prices remaining very elevated, applications for higher balance, conventional loans still dominate the mix of activity.”
NOTE: The big drop in refi applications resulted in the refinance share of mortgage activity decreasing to 64.5% of total applications from 66.4% the previous week.