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The latest survey by the Association of Mortgage Bankers showed that mortgage applications for the week ended September 30 were down 14.2% from the previous week.
The unadjusted mortgage credit index fell 14% from last week. The refinancing index is down 18% from last week and 86% from last week.
The seasonally adjusted purchasing index fell 13% from a week ago and 37% from this time last year.
“Overall application activity last week fell to the lowest level since 1997 as mortgage rates continued to rise. Last week, the 30-year fixed rate was 6.75%, the highest since 2006.”
Said Vice President of Economics and Industry Forecasts, Joel. “Current rates have more than doubled over the last year and are up 130 basis points in the last seven weeks alone.”
While the number of repurchase requests has fallen significantly and availability is at an all-time low, the sharp rise in interest rates has virtually eliminated the demand for refinancing.
With a mortgage payment of $2,500 and 20% down, homebuyers can get a home for $476,000 at the end of September. At the beginning of 2021, this amount was $759,000.
Mortgage News Daily reported Tuesday that mortgage rates fell to 6.65 percent compared to the average 30-year fixed rate.
Kahn noted that the gap between equal interest rates widened again compared to jumbo loans, with the percentage of variable-rate mortgages reaching about 12 percent of applications.
Daejayeon also contributed to the drop in usage for the week ending in September. 30.
Hurricane Ian, which killed more than 100 people, made landfall in Florida, causing massive roadblocks and evacuations. Florida reports were down 31% from 14% overall.
The share of mortgage refinancing fell to 29% from 30.2% last week.
FHA’s share of all applications rose from 12.5% a week ago to 13.2%. VA’s share of total claims remained at 10.7%, the same as last week.
30-year fixed mortgage and jumbo loan ($647,200 or more) 80% LTV loan Increase from 6.01% to 6.14% Average interest rate increased from 6.01% to 0.79%.
The average contract rate for 5/1 ARMs increased from 5.30% to 5.36%, and the score for 80% LTV loans decreased from 1.28 (with an upfront fee) to 1.02.
Reference Source: Housing Wire
