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Mortgage applications fell 2% this week, dampening demand for home loans as mortgage rates rose.
Mortgage Bankers Association research found that mortgage rates typically fell by 2% each period and were not on the schedule for the week ending October 7.
The downward trend in application volume is explained by the recent increase in transfer rates.
According to Mike Fratantoni, MBA Senior Vice President and Chief Economist, in the first week of Q4 2022, mortgage rates rose again, pushing the 30-year mortgage rate to 6.81%, the highest level since 2006.
He also added, “In our MBA research, mortgage interest rates rose on all types of mortgages, especially for 5-year ARM loans by 20 basis points.
The share of ARM hardware remained high, down from 11.7% last week.
Demands for the currency were down 2% from the previous week and 86% from the same period last year. Purchase orders increased 2% year-over-year and 39% year-over-year.
The proportion of secondary transport services remained stable at 29% of total requests, and the proportion of variable rate transport services decreased to 11.7%.
“The number of applications for refinancing and home purchases is down from last year’s highs,” Fratantoni said.
“News that employment and wages continued to grow in September is good for the housing market as rising incomes support housing demand.
But he dismissed speculation that the Fed would lead the plan to raise rates early.”
Reference Source: MPA
