Single-family homes in a residential neighborhood in San Marcos, Texas.
Jordan Vonderhaar | Bloomberg | Getty Images
After stabilizing the previous week, mortgage demand rose last week, even though mortgage rates rose for the fourth straight week. Total application volume rose 1.7% 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) rose to 6.90% from 6.86%, with points rising to 0.70 from 0.60 (including origination fee) for 20% loans. . Premium. This was the highest level since July.
Home mortgage applications rose 2% during the week but were 1% lower than the same week a year ago. Purchase demand was driven by conventional and FHA loans, with FHA purchase orders seeing a 7% increase.
“For-sale inventory has declined in some markets, and some potential buyers have been able to take advantage of increased supply and lower FHA rates that have fallen slightly compared to the corresponding 30-year fixed rate,” said Joel Kahn, an MBA economist. . , in a statement.
Home loan refinance applications rose 2% during the week and were 43% higher than the same week a year ago. The demand was driven by a 10% increase in virtual assistance requests.
Mortgage rates are roughly flat so far this week, according to a separate survey by Mortgage News Daily. Prices rose on Monday but then fell on Tuesday after news that the United States had allowed Ukraine to use long-range missiles to attack Russia, which changed its doctrine on using nuclear weapons in response. Bond yields fell in investors' so-called flight to safety.
“The improvement in mortgage rates was quite disappointing compared to the headlines — perhaps because it is far from the first such threat from Russia, or because traders are skeptical that anyone wants to press any of the red buttons on the Mutually Assured Destruction machine,” he wrote. Matthew Graham, Chief Operating Officer of Mortgage News Daily.
