Total mortgage demand was up 1.4% to start the year thanks to a jump in purchases, according to the latest data from the Mortgage Bankers Association…(MBA)
- PURCHASE index was up 2.0% for the week but still down 17% when compared to the same time last year.
- REFI index was down slightly with a 0.1% decline, but was down more substantially year-over-year with a 50% drop.
NOTE: The refinance share of mortgage activity decreased to 64.1%of total applications from 65.4% the previous week.
Mortgage rates continued their climb with a big jump for the 30-yr rate…
- 30-YR FIXED: The average contract interest jumped 19 basis point to 3.52%, this is 62 basis points higher than one year ago.
- 15-YR FIXED: The average contract interest rate jumped 13 basis points to 2.73, this is 34 basis points higher than one year ago.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said rates are reaching the breaking point when it comes to refis…
- “Mortgage rates increased significantly across all loan types last week as the Federal Reserve’s signaling of tighter policy ahead pushed U.S. Treasury yields higher. The 30-year fixed rate hit 3.52 percent, its highest level since March 2020. Rates at these levels are quickly closing the door on refinance opportunities for many borrowers.”