Homes for sale in Houston, TX on August 12, 2021.
Brandon Bell | Getty Images
Mortgage applications rose 2.2% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
Refinancing applications, which are typically the most sensitive to weekly interest rate fluctuations, were up 2% over the week, but still 86% lower than the same week a year ago. Only 220,000 people can benefit from refinancing, according to real estate data firm Black Knight, even though he’s rebounded from 7.16% a month ago, when interest rates were at a recent high. It’s just
Mortgage applications to buy homes increased 3% weekly, but are down 41% from a year ago. Some potential buyers may re-enter after hearing less competition and more bargaining power, but there is still a shortage of homes for sale and prices have not fallen significantly.
Interest rates are still double what they were at the beginning of the year, but have eased somewhat in the last week. Average contractual interest rates for 30-year fixed rate mortgages fell from 6.90% to 6.67% with loan balances conforming ($647,200 or less), points increased from 0.56 (including origination fees) to 0.68, loans down 20% is the case. payment.
MBA economist Joel Kang said, “The decline in mortgage rates has reduced the purchasing power of prospective homebuyers, who have been largely sidelined as mortgage rates have more than doubled over the past year. should improve. [adjustable-rate] The proportion of applications also fell to 8.8% of last week’s loans, down from a range of 10% to 12% over the past two months. “
Mortgage rates haven’t moved at all this week as the Thanksgiving holiday tends to weigh on volume.
“It’s not that things aren’t moving. “While we expect the next week to be closer to normal, the market will continue to wait until December 13th and 14th for the biggest move.”
That’s when the government releases its next major report on inflation and the Federal Reserve releases its next move on interest rates.