- Mortgage applications down for third consecutive week
- Purchase index up for fourth consecutive week
Mortgage Applications Decrease -2.5% Last Week
The downward trend in mortgage applications continued for the third straight week. This last week, according to the latest report from the Mortgage Bankers Association (MBA), mortgage applications declined -2.5%.
Additionally, refinance applications fell -5%. Such refi declines hit both conventional and government applications.
Mortgage Rates Increased to 3.36% and Purchase Index Up +3% Last Week
Both mortgage rates and purchase prices increased last week, 3.36% and +3% respectively. Inventory continued to be low with just a 2-month supply of existing homes for sale. That said, highly motivated buyers are almost forced to take whatever they can get, including overpriced homes.
On a year-over-year basis, the purchase index was up an eye-popping +26%, according to the MBA.
Joel Kan, MBA’s associate vice president of economic and industry forecasting, said, “Inadequate housing inventory continues to put upward pressure on home prices. As both home-price growth and mortgage rates continue this upward trend, we may see affordability challenges become more sever if new and existing supply does not significantly pick up.”
Take a More Detailed Look at Last Week’s Mortgage Application Data:
- Average contract interest rate for 30-year fixed rate mortgages with conforming loan balances ($548,250 or less) increased from 3.28% to 3.36%
- Average contract interest rate for 30-year fixed with jumbo loan balances increased from 3.34% to 3.4%
- Average contract interest rate for 30-year fixed increased from 3.25% to 3.35% – 3rdstraight week of increases
- Average contract interest rate for 15-year fixed increased from 2.67% to 2.72% – 2ndstraight week of increases
- Average contract interest rate for 5/1 ARMs increased from 2.82% to 2.79%
Thanks to Mortgage Bankers Association and HousingWire.
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