Mortgage demand falls to nearly half of what it was a year ago, as interest rates continue to rise

  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.20% last week from 5.13%.
  • Refinance demand fell another 8% for the week and was 68% lower than the same week one year ago.
  • Mortgage applications to purchase a home fell 3% for the week and were 14% lower than the same week one year ago.

Mortgage demand continued to crumble last week, as mortgage rates climbed to their highest level since 2010. Total application volume fell 5% last week compared with the previous week and was nearly half of what it was one year ago, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.20% last week from 5.13%, with points rising to 0.66 from 0.63 (including the origination fee) for loans with a 20% down payment. One year ago, the rate was exactly 200 basis points lower at 3.20%.

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“Ongoing concerns about rapid inflation and tighter U.S. monetary policy continued to push Treasury yields higher, driving mortgage rates to their highest level in over a decade. Rates increased across the board for all loan types,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

www.cnbc.com/2022/04/20/mortgage-demand-falls-to-nearly-half-of-what-it-was-a-year-ago.html

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