Total Mortgage demand jumped 3.7% despite rates seeing slight increase, according to the Mortgage Bankers Association weekly survey.
- The Purchase Index saw a slight decline to 153.5 for the week ending February 2nd, a 0.6% decline from last week and the lowest level since the first week of 2024.
- The Refinance Index jumped to an index of 500.2 for the week ending February 2nd, up 12.3% from the prior week and the highest level since May 2023.
Rates. The average contract interest rate for 30-year fixed-rate mortgage with conforming loan balance rose to 6.80%, up 2 basis points from the prior week and the highest level since the first week of the year but in line within the variance of the last two months.
Analysis. Joel Kan, MBA’s Deputy Chief Economist. “Rates at these levels have not prompted much of a reaction in the refinance market, as most homeowners have mortgages with much lower rates. Purchase activity has been strong to start 2024 compared to the final quarter of 2023. However, activity is still weaker than a year ago because of low housing supply.”