Blaine, Minnesota. Brand new townhomes for sale with new construction financing and $4,500 builders credit to attract new buyers.
Michael Silk | Universal Images Group | Getty Images
Mortgage interest rates pulled back last week after jumping sharply to start July. It fueled refinance demand but did little to help potential homebuyers.
Total mortgage application volume rose 1.1 percent last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for conforming loan balances ($726,200 or less) for 30-year fixed-rate mortgages fell from 7.07% to 6.87%, from 0.74 points (including origination fees) to 0.66 for loans with 20% down payments. This rate was 5.82 percent in the same week last year.
“Mortgage rates fell last week, as markets reacted positively to incoming data showing that U.S. inflation continued to cool,” MBA economist Joel Kahn said in a release.
Low rates have forced existing homebuyers to call their lenders. Applications to refinance home loans rose 7 percent during the week but were still down 32 percent year-on-year. The refinance share of mortgage activity increased to 28.4 percent of total applications from 26.8 percent last week.
Home mortgage applications fell 1% for the week and were down 21% from the same week in 2022. Weakness in home buying is exacerbated by a reduction in supply and rising home prices. Prices had cooled for most of last year, but are now picking up again due to tight supply and still-strong demand.
Mortgage rates haven’t risen much to start this week, as they’re still hanging in the high 6% range over the 30-year fixed term. Markets and investors are now digesting the quarter. Income report And trying to play the Federal Reserve’s next moves.
.
Source by [CNBC News]
