Mortgage applications dipped last week as rates hit their highest level since November 2022.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 3.1%, adding to the week prior’s 3% decline.
Adjusted purchase applications fell by 3%, while the unadjusted index dipped 3% from the week before and 27% lower YOY.
The average interest rate for 30-year fixed loans rose from 6.93% to 7.09%, pushing homeownership farther out of reach for many Americans.
Refinances slipped by 3% and remain 32% lower than the same time last year, making up 28.7% of total applications. In the past decade, refis averaged 58% of total activity.
“Treasury yields rates…
Mortgage rates ticked down again, the second consecutive week of declines.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.69%, down from 6.71% the week prior.
A year ago at this time, the 30-year FRM averaged 5.78%.
The 15-year fixed-rate mortgage increased, however, up from 6.07% to 6.10%. A year ago, it averaged 4.81%.
“Mortgage rates decreased slightly this week in anticipation of the pause in rate hikes by the Federal Reserve,” said Sam Khater, Freddie Mac’s Chief Economist.
The pause did come: after ten consecutive increases, the Fed declined to raise interest rates at its June meeting.
“We have been seeing the effects of our policy tightening on demand in the most interest-rate-sensitive sectors of…
Interest rates have dampened demand for mortgages, but some areas remain prime opportunities for lenders, according to a new study from TransUnion. The study, “Where Will Growth In Mortgage Originations Come From?,” analyzed the credit-active U.S. population between Q2 2017 and Q1 2022. It flagged consumers with a variety of traits, such as VA eligibility and income status, who withdrew their applications or may have been turned down for a mortgage. The results showed mortgage-qualified consumer segments that have “purchase origination potential.” Of the approximately 121 million low- and moderate-income (LMI) consumers studied, 95% were credit eligible for a mortgage. Buyers should have at least a 620 credit score when applying for a conventional loan. 86% of VA-eligible consumers were…
