Despite a slight drop in rates, total mortgage demand fell 3.3% for the week, according to the Mortgage Bankers Association’s…(MBA)
- REFINANCE demand fell 4% from the previous week and was down 33% from the same week one year ago.
- PURCHASE demand also fell 2% for the week and was 9% lower than the same week one year ago.
NOTE: The refinance share of mortgage activity decreased again to 61.9% of total applications from 62.2% the previous week.
Mortgage rates reversed a two month trend of upward movement with a slight decline for the week…
- 30-YR FIXED: The average contract interest rate fell 6 basis points to 3.24% which is still 23 basis points higher than the same time one year ago.
- 15-YR FIXED: The average contract interest rate fell one basis point to 2.58 which is 3 basis points higher than the same time one year ago.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said that despite declining demand the housing market is strong and the future looks bright…
- “Purchase activity continues to be held back by high prices and low for-sale inventory, but current applications levels still point to healthy housing demand. MBA is forecasting for a record $1.6 billion in purchase mortgage originations this year, and sustained demand leading to another record year in 2022.”