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 7
Last updated on December 5th, 2022 at 10:05 pm
Even though history showed that during fall not many people indulge in home buying, but low rates and growing inventory have homebuyers on a buying spree.
According to the Mortgage Bankers Association compared to the previous week last week the mortgage applications to purchase a home rose to 7%. These applications were 11% lower than the same time last year but that was the smallest annual fall off in three and half months.
Buyers have been hand-tied due to the low inventory of homes for sale, but lately, the inventory has been rising slowly.
According to a report from Realtor.com during the summer, the number of new listings rose for nine straight weeks and fell again last week.
Home prices continue to be climbing which also affected the ‘purchase’ mortgage applications.
The MBA economist, Joel Kan, said, that the purchase applications of conventional and government have been increasing, and the average loan size for a purchase application rose and this purchase market is also affecting the sales prices.
The refinance applications dropped 3% for the week and were also 3% lower than the same time a year ago.
As mortgage rates have hardly moved in the past month, and rates are now higher than they were at the start of the year borrowers have not seen any motivation to refinance.
For loans where the down payment was 20% the average contract interest rate on a 30-year fixed-rate mortgage with conforming loan balance remains the same at 3.03%, with points decreasing from 0.33 to 0.32.
Last week the total applications, of the refinance share of mortgage activity decreased from 66.8% to 64.9%.
Reference Source: CNBC
