As mortgage rates continue to rise demand for refinances continue to plummet with total demand falling 13.1%, according to the Mortgage Bankers Association’s weekly survey…(MBA)
- REFIS: The Refinance Index saw demand fall 16% from the previous week and was 56 % lower than the same time one year ago.
- PURCHASES: The Purchase Index saw demand fall 10% from the previous week and was 6% lower than the same time one year ago.
NOTE: This was the lowest level of demand since December 2019 and the refinance share of mortgage activity decreased to 50.1% of total applications from 52.8% the previous week.
Mortgage rates did continue to rise but at a much slower pace than the double-digit jump we saw last week…
- 30-YR FIXED: The average contract interest rate was up one basis point to 4.06% which is 98 basis points higher than the same time one year ago.
- 15-YR FIXED: The average contract interest rate was up 5 basis points to 3.42% which is 86 basis points higher than the same time one year ago.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, noted that the average loan amount did not increase but remained close to record highs…
- “Purchase applications, already constrained by elevated sales prices and tight inventory, have also been impacted by these higher rates and declined for the third straight week. While the average loan size did not increase this week, it remained close to the survey’s record high.”