Mortgage demand rose 28% while rates fell slightly

The numbers are: The decline in mortgage rates led to an increase in mortgage demand to an adjusted 27.9% over the period.

As mortgage rates fell across the board, demand for sales and refinancing increased. That pushed the market index up, a measure of the number of mortgage applications, said the Mortgage Bankers Association (MBA) on Wednesday.

The market index rose to 238.7 for the week ending January 13, up 27.9% from the week before. Last year, the index stood at 593.7.

Key information: The refinancing index jumped to 34.2% last week, but fell 81% compared to last year.

The sales index – which measures mortgage applications for the purchase of a home – rose 24.7% from the previous week.

Mortgage rates fell across the board.

The average contract rate for 30-year mortgages for homes sold for $726,200 or less was 6.23% for the week ending Jan. 13. That was down from 6.42% the week before, the report said. that of the MBA.

For homes that sold for more than $726,200, the average rate for 30-years was 6.08%.

The 15-year fell to 5.58%.

The rate for adjustable rate mortgage down to 5.31%.

The big picture: Both buyers and home-owners who have been waiting in the background got their turn last week, as falling prices gave them an opportunity.

With rates expected to decrease further, this trend of heating up mortgage demand is likely to continue for now.

What are they saying? “Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak of mortgage rates last fall,” Mike said. Fratantoni, senior vice president and chief economist at MBA.

“As we enter the early spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time home buyers,” he added.

Market response: The yield on the 10-year Treasury note

down 3.5% in morning trading Wednesday.

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