Total mortgage demand was up 2.0% for the week ending May 6th. This was the second week in a row that mortgage demand was up, according to the Mortgage Bankers Association…(MBA)
- PURCHASES: The Purchase index increased 5% compared with the previous week but is still down 8% from the same week one year ago.
- REFIS: The Refinance Index was down 2.0% from the previous week and is now 72% lower than the same week one year ago.
NOTE: The refinance share of mortgage activity decreased to 32.4% of total applications from 33.9% the previous week.
Mortgage rates showed no signs of slowing in every category for the week ending May 6th…
- 30-YR FIXED: The average contract rate was up 17 basis points to 5.53% and is now up 232 basis points from one year ago.
- 15-YR FIXED: The average contract rate was up 11 basis points to 4.79% and is now up 230 basis points from one year ago.
- 5/1 ARM: The average contract interest rate was up 22 basis points to 4.47% and is now up 190 basis points from one year ago.
Another surprising week for mortgage demand. Most economists would think with rates 200 basis points higher than one year ago that demand would be slowing. However, for the second week in a row, the housing market defied conventional thinking. I guess when the stock market continues to collapse you gotta put your money in something so why not real estate…