April 16, 2024


A home is offered for sale on March 22, 2024 in Chicago, Illinois. 

Scott Olson | Getty Images

Mortgage rates didn’t move much last week, and for the second week in a row, neither did mortgage demand. Potential buyers are handcuffed by exorbitant costs and low supply, and current homeowners have little to no incentive to refinance at today’s high rates.

Total mortgage application volume last week was essentially flat, dropping 0.6% from the previous week, 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 ($766,550 or less) slipped to 6.91% from 6.93%, with points decreasing to 0.59 from 0.60 (including the origination fee) for loans with a 20% down payment.

Applications to refinance a home loan fell 2% for the week and were 5% lower than the same week one year ago. Rates have been hovering around 7% for the past few months, and close to 90% of current borrowers have mortgages with rates below 6%.

Applications for a mortgage to purchase a home fell 0.1% from one week earlier and were 13% lower than the year-earlier week. Purchase demand now is about half of what it was in March 2020, before the Federal Reserve dropped rates to zero, igniting a massive homebuying boom, which wiped out already low supply. With rates now double what they were back then, sellers are stuck in place, and buyers can afford far less.

“Elevated mortgage rates continued to weigh down on homebuying. Purchase applications were unchanged overall, although FHA purchases did pick up slightly over the week,” noted Joel Kan, an MBA economist.

Mortgage rates bounced higher to start this week, after new economic data on manufacturing came in higher than expected and noted higher prices.

“Prices are critical at the moment because inflation is keeping rates elevated,” wrote Matthew Graham, chief operating officer at Mortgage News Daily. “If inflation refuses to resume the downward trajectory that was in place through the end of 2023, rates won’t have a compelling reason to rally.”  

Wednesday brings more data on growth in the services sector, and Friday the all-important monthly employment report is released. Both could create rate momentum in either direction.

Don’t miss these stories from CNBC PRO:



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Batman138 Bro138 Dolar138 Gas138 Gudang138 Hoki99 Ligaciputra Panen77 Zeus138 Kilat77 Planet88 Gaspol168 Sikat88 Rupiah138 Garuda138 Gacor77 Roma77 Sensa138 Panen138 Slot138 Gaco88 Elanggame Candy99 Cair77 Max7 Best188 Space77 Sky77 Luxury777 Maxwin138 Bosswin168 Cocol88 Slot5000 Babe138 Luxury138 Jet77 Bonanza138 Bos88 Aquaslot Taktik88 Lord88 Indobet Slot69 Paus138 Tiktok88 Panengg Bingo4d Stars77 77dragon Warung168 Receh88 Online138 Tambang88 Asia77 Klik4d Bdslot88 Gajah138 Bigwin138 Markas138 Yuk69 Emas168 Key4d Harta138  Gopek178 Imbaslot Imbajp Deluna4d Luxury333 Pentaslot Luxury111 Cair77 Gboslot Pandora188 Olxtoto Slotvip Eslot Kuy138 Imbagacor Bimabet