Homebuyer mortgage demand inches higher, but rates hit highest level since summer – News 24-7 Live News 24-7 Live
Homebuyer mortgage demand inches higher, but rates hit highest level since summer

Homebuyer mortgage demand inches higher, but rates hit highest level since summer

  • Mortgage applications to purchase a home rose 3% last week from the previous week, according to the Mortgage Bankers Association.
  • Mortgage applications to refinance a home loan decreased 5% for the week and were 13% lower than a year ago.
  • Mortgage rates are up more than 50 basis points, or half a percentage point, since the start of the year, reducing the potential savings from a refinance.

Higher mortgage rates do not appear to be dampening demand for home purchases but are crimping refinance volume.

Mortgage applications to purchase a home rose 3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. That is the fourth straight week of gains. Volume was 26% higher than a year ago. Annual comparisons, however, will likely get very large over the next month because homebuying stalled at the start of the pandemic one year ago.

“Purchase applications were strong over the week, driven both by households seeking more living space and younger households looking to enter homeownership,” said Joel Kan, an MBA economist. “The average purchase loan balance increased again, both by quickening home-price growth and a rise in higher-balance conventional applications.”

News Source:- CNBC

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