The average contract interest rate just set a new record for 30-year fixed rate mortgages at 4.05%.
Average Interest Rate Jumped from 3.83% to 4.05% in Mid-February
Even before the March meeting of the Federal Reserve when the central bank will likely announce a formal rate hike to stall inflation, the average contract interest rate for 30-year fixed rate mortgages with conforming loan balances of $647,200 or less climbed from 3.83% to 4.05%
This mid-February interest rate increase came amid a time of pricier than ever home prices that make homebuying even more expensive and home mortgages even larger than ever.
Quiz:
Please choose one answer:
1) I am ready to join EXP Realty.
2) I am interested in EXP Realty and need more info.
3) I am not interested in EXP Realty.
Key:
* If you answered “#1” congratulations. You are about to join the fastest-growing real estate company in the world. Tim and Julie Harris are inviting you to join them at EXP Realty. Text Tim directly for the next steps: 512-758-0206. (text only please)
* If you answered “#2” please watch the videos and check out the other intel on this site. http://whylibertas.com/harris .
* If you answered ‘#3’ no worries. You will want to check out whylibertas.com/harris so you can at least know what EXP Realty is and why so many agents are moving to EXP.
Average Size of Purchase Loan Application Set Record in Mid-February
The combination of ever-increasing home prices and rising interest rates drove the average purchase loan size to a record $453,000 in mid-February, according to the Mortgage Bankers Association (MBA). Joel Kan, an MBA economist, said, “Prospective buyers still face elevated sales prices in addition to higher mortgage rates. The heavier mix of conventional applications again contributed to another record average loan size at $453,00.”
Due to this double whammy of increasing home prices (+18.8% y/y in December, according to the most recent report from CoreLogic) and increasing mortgage loan rates, Kan said, “Purchase applications saw a modest decline over the week.”
Continuing, Kan said, “Mortgage rates increased across the board last week following the recent rise in Treasury yields, which have moved higher due to unrelenting inflationary pressures and increased market expectations of more aggressive policy moves by the Federal Reserve.”
Purchase applications declined slightly by -1% over the week and -7% y/y for the same week in 2021.
Refinance Demand Dramatically Down
Refinance demand has declined as mortgage rates have climbed over the past several months.
According to the MBA, refinance application volume dropped -9% for the week and was down -54% for the same week a year ago. The overall refinance share of total mortgage applications dropped from 56.2% the week before to 52.8%. This 52.8% share of total mortgage applications hit the lowest level since July 2019.
Are you ready to learn what your DISC personality style is? You know it’s critical that you understand what your natural personality style is. Once you have obtained this knowledge everything in your business and personal life will change for the better. Tim and Julie Harris are making it super simple for you to have this powerful info. Now, text the word YOU to 47372, and when you do you will instantly receive a special exclusive text link. Next, you will complete your own DISC personality test.. the results will be shared with you instantly once you complete the simple and fun test, no strings attached. Simply text the word YOU to 47372 and click the link.
P.S. (Limited time: no charge to take the complete test)
* 4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & Privacy: slkt.io/JWQt
Thanks to CNBC.
