Mortgage demand falls slightly even as rates fall from recent highs

The number of mortgage applications slightly increased last week, falling 0.5% compared to the previous week, according to the Mortgage Bankers Association’s data series.

Prices, meanwhile, fell back last week, but are still near 22-year highs.

The average contract interest rate for 30-year fixed-rate mortgages with reasonable credit balances ($647,200 or less) decreased to 7.06% from 7.16%, with points falling u to 0.73 from 0.88 (including the initial fee) for loans with 20% down. pay. That rate was 3.24% in the same week last year.

The small drop was enough to move the needle on refinancing demand. Those requests increased 0.2% for the week but are still 85% lower than last year. There are now a few qualified borrowers who have never had a lower rate than what is being offered today.

Home mortgage applications fell 1% for the week and are 41% lower year-over-year. Real estate agents and builders say buyer traffic has slowed. Agents say buyers today are in no rush, and some may be waiting for prices to pull back more.

“With the exception of the ARM loan rate, the rates for all other types of loans were more than three percent higher than last year. the general housing market, as seen in the damage the conditions in start-up houses and commercial houses,” said Joel Kan, an MBA economist.

Mortgage rates that started this week are slightly higher again, according to Mortgage News Daily, but all are listening to Wednesday’s Federal Reserve. Although the Fed is widely expected to raise its interest rate to 0.75 percent, investors are more focused on what will be marked for future rates. Some believe the Fed is preparing to end or slow its rate hikes.

“If they get around to throwing that bone in the market, it’s likely to be good for rates at first,” wrote Matthew Graham, chief operating officer at Mortgage News Daily. “If they shy away from it at all, chances are it’s going to be a bad (Wednesday) afternoon… Either way, the risk is high.”

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