Warning: Undefined variable $custom_content in /home4/comcompare/public_html/mortgagenews/wp-content/plugins/code-snippets/php/snippet-ops.php(582) : eval()'d code on line 10
After rising continuously for 21 days, the mortgage rates dropped last week, but it didn’t have much effect on mortgage demand.
According to the Mortgage Bankers Association’s seasonally adjusted index last week the total application volume rose 1.6% compared to the previous week.
The average interest rate for 30-year fixed-rate mortgages with conforming loan balances reduced from 3.06% to 3.03%, with points falling from 0.34 to 0.29 for loans with a 20% down payment, this includes the origination fee.
Joel Kan, an MBA economist said that last week the investors were anxiously monitoring the rise in COVID-19 cases in several states which could affect economic activity resulting in falling treasury yields, this resulted in a slight decline in the mortgage rates.
Refinance applications that terribly rate sensitive, inched up by just 1% they were 3% higher during the same week last year. Many borrowers had already refinanced at even lower rates last autumn.
Last week the purchase applications increased by 3%, but they were still 16% lower than the same time in 2020. With the supply of homes for sale still far too low homebuyers are stuck.
During the start of July, the purchase index was at its highest level, but they still cannot match the scores of last year said, Kan.
The average loan sizes have toned down, which is an indication that more first-time buyers have a ray of hope by the recent improvement in for-sale inventory for both newly built homes and existing homes.
Reference Source: CNBC
