Thanks to rising rates, rising prices, and falling inventory levels total mortgage demand fell 5.4% for the week, according to the Mortgage Bankers Association…(MBA)
- REFIS: The Refinance Index continues its slide falling 9.0% for the week and is now down 54% year-over-year.
- PURCHASES: The Purchase Index fell 1.0% from the previous week and is now down 7% year-over-year.
NOTE: The refinance share of mortgage activity decreased to 52.8%of total applications from 56.2% the previous week
- 30-YR FIXED: The average contract rate jumped a whopping 22 basis points to 4.05% which is 107 basis points higher than one year ago.
- 15-YR FIXED: The average contract rate jumped a whopping 21 basis points to 3.37% which is 90 basis points higher than one year ago.
NOTE: The 30-year rate was last reported at 4.05% during the week of October 20th, 2019.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, noted the big jump in mortgage rates and the increase in loan amounts…
- “The 30-year fixed rate saw the largest single-week increase since March 2020 and was above the 4 percent mark for the first time since 2019…Prospective buyers still face elevated sales prices in addition to higher mortgage rates. The heavier mix of conventional applications again contributed to another record average loan size at $453,000.”