Total mortgage demand increased 0.3% from one week earlier, according to the Mortgage Bankers Association weekly survey…(MBA)
- PURCHASE demand jumped 4% from one week earlier but was still 9% lower than the same week one year ago.
- REFINANCE demand fell 2% from the previous week and was a whopping 26% lower than the same week one year ago.
NOTE: The refinance share of mortgage activity decreased to 62.2 percent of total applications from 63.3 percent the previous week.
Mortgage rates continued to increase for the week ending October 22nd…
- 30-YR FIXED: The average contract interest rate jumped 7 basis points to 3.30% which is 30 basis points higher than the same time one year ago.
- 15-YR FIXED: The average contract interest rate was up 5 basis points to 2.59% which is still 1 basis point lower than the same time one year ago.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said the strong demand for purchases pushed up loan amounts which hurts affordability…
- “Purchase applications picked up slightly, and the average loan size rose to its highest level in three weeks, as growth in the higher price segments continues to dominate purchase activity. Both new and existing-home sales last month were at their strongest sales pace since early 2021, but first-time home buyers are accounting for a declining share of activity.”