Mortgage Bankers Association’s seasonally adjusted index showed little movement in mortgage applications last week, down 0.5% from the previous week.
Interest rates, on the other hand, fell slightly last week, but are still close to 22-year highs.
Average contractual interest rates for 30-year fixed-rate mortgages fell in line with loan balances (under $647,200) from 7.16% to 7.06%, with points dropping from 0.88 (including origination fees) to 0.73. payment. That rate was 3.24% in the same week a year ago.
The slight drop was enough to move the refinancing demand needle slightly. These applications put him up 0.2% in one week, but he was 85% lower than the previous year. Currently, there are very few eligible borrowers who do not yet have interest rates lower than those currently offered.
Mortgage applications to buy homes were down 1% in the week and 41% year-on-year. Both realtors and homebuilders say buyer traffic is slowing. Buyers today feel no sense of urgency and some are waiting for even more significant rate cuts, the agency said.
“Apart from ARM loan interest rates, all other loan interest rates are more than 3 percent higher than they were a year ago. These elevated interest rates continue to put pressure on both buying and refinancing activity. , impacting ongoing affordability challenges in the broader housing market, as seen in declining trends in housing starts and home sales,” said Joel Kan, MBA economist. .
Mortgage rates rose slightly again this week, but all ears will be on Wednesday’s Federal Reserve meeting, according to the Mortgage News Daily. The Fed is widely expected to raise its interest rate by 0.75%, but investors are watching his Fed’s signals for future interest rate movements. Some believe the Federal Reserve is ready to end, or at least slow down, rate hikes.
“If they can even get that bone into the market, it’s going to be good for rates at first,” said Matthew Graham, chief operating officer of Mortgage News Daily. interest rates will get worse [Wednesday] afternoon. … Either way, the volatility risk is high.”