Mortgage demand was up for the second week in a row, according to the Mortgage Bankers Association…(MBA)
- PURCHASES: The Purchase Index was up 8% for the week and is now down only 10% from the same time one year ago.
- REFIS: The Refinance Index fell 3% for the week and is now 77% lower than the same week one year ago.
NOTE: The refinance share of mortgage activity decreased to 29.7% of total applications from 31.7% the previous week and the ARM share of applications jumped back to over 10% from 8.1% last week.
Mortgage rates surged to the highest level since 2008 with the average contract interest rate for a 30-year fixed-rate mortgage jumping 24 basis points to 5.98%, this is 270 basis points higher than one year ago.
Joel Kan, MBA economist, has some good news for potential buyers…
- “The average loan size, at just over $420,000, is well below its $460,000 peak earlier this year and is potentially a sign that home price-growth is moderating.”