Rising interest rates continue to put downward pressure on mortgage demand, according to the Mortgage Banker’s Association latest weekly report…(MBA)
- Refis saw the biggest drop with a 7% decline for the week which is also 22% lower than the same time one year ago.
- Purchases fell 5 % for the week which was also 12 percent lower than the same time one year ago.
NOTE: The continued to decline of refis mean the refinance share of mortgage activity fell to 63.3% of total applications from 63.9% the previous week.
Mortgage rates continued to climb across the board for the week ending October 15th…
- 30-YR FIXED: The average contract interest rate increased 5 basis points to 3.23% which is now 21 basis points higher than it was one year ago.
- 15-YR FIXED: The average contract interest rate jumped 6 basis points to 2.54% which is actually still below the 2.61% we saw at the same time one year ago.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said in a statement that rising rates are really starting to impact the refinance side of the business…
- “Refinance applications declined for the fourth week as rates increased, bringing the refinance index to its lowest level since July 2021. The 30-year fixed rate has increased 20 basis points over the past month and reached 3.23 percent last week – the highest since April 2021. The 15-year fixed rate increased to 2.54 percent, which is the highest since July,”