Purchase Demand

Mortgage Apps Reverse Course, Fall For First Time In A Month

Posted on by TMN Editor
Mortgage applications reversed after a month of increases despite declining rates, a rocky start to the typically robust spring buying season. The Mortgage Bankers Association’s weekly survey says the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 4.1%. Adjusted purchase applications dropped by 4%, while the unadjusted index was down 3% from the week before and 35% lower YOY. Mortgage rates fell slightly, with the average interest rate for 30-year fixed loans down from 6.45% to 6.40%. This is the lowest level in more than a month. Jumbo rates increased, however, from 6.27% to 6.36%. “While we have seen relative weakness at the high end of the housing market in recent months, the…

Rates Fall To 5.13%

Posted on by TMN Editor
Mortgage rates dropped to an average 5.13% last week from 5.22% the week prior, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.13%, following a rollercoaster couple of weeks that saw both a 30-point rate decrease and a 20-point increase. A year ago at this time, the 30-year FRM averaged 2.86%. “Inflation appears to be beyond its peak, which has stopped the rapid increase in mortgage rates that the housing market was experiencing earlier this year,” said Sam Khater, Freddie Mac’s Chief Economist. “The market continues to absorb the cumulative impact of the large price and rate increases that led to a plunge in affordability. As a result, over the rest…