Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Business

Mortgage demand surges as interest rates ease off recent highs

by June 15, 2023
June 15, 2023
Mortgage demand surges as interest rates ease off recent highs

Mortgage rates pulled back for the second straight week last week, and it was enough to get both current and potential homeowners on the phone with their lenders.

Mortgage application volume rose 7.2% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.77% from 6.81% in the prior week, with points falling to 0.65 from 0.66 (including the origination fee) for loans with a 20% down payment.

Applications to refinance a home loan rose 6% for the week but were 41% lower than the same week one year ago. While rates pulled back, they are still more than a full percentage point higher than they were a year ago and more than twice what they were in the first two years of the Covid pandemic, when there was a refinance boom. Most borrowers today have lower rates than what is currently available and therefore do not want to lose those rates even for a cash-out refinance.

Applications for a mortgage to purchase a home increased 8% for the week but were 27% lower than the same week one year ago.

“Rates that are still more than a percentage point higher than a year ago, and low for-sale inventory continue to constrain homebuying activity in many markets,” said Joel Kan, an MBA economist, in a press release. “The average loan size on a purchase loan decreased for the third straight week, as we continue to see more first-time homebuyer activity in the purchase market.”

More from CNBC

Why economists say it’s a near certainty that housing inflation will soon fall Covid vaccine maker Novavax sees a pathway to survival – but it won’t be easy Google’s return-to-office crackdown gets backlash from some employees: ‘Check my work, not my badge’

Mortgage rates haven’t moved much this week, but that could change Wednesday afternoon when the Federal Reserve announces the results of its latest policy meeting and updated rate forecasts.

“Some say the Fed will use those forecasts to telegraph another rate hike or two in 2023. Although the Fed Funds Rate doesn’t directly dictate mortgage rates, such a move would still put quite a bit of upward pressure on interest rates of all shapes and sizes,” wrote Matthew Graham, COO of Mortgage News Daily.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Federal Reserve pauses interest rate hikes this month
next post
Inflation cooled to 4% in May — the lowest reading in two years

Related Posts

Hertz says 2024 hack exposed some customers’ driver...

April 16, 2025

More signs of slowing inflation may arrive in...

December 13, 2023

Rivian secures up to $5 billion from Volkswagen;...

June 27, 2024

How Volvo landed a cheap Chinese EV on...

April 26, 2024

See how the prices have changed for popular...

August 11, 2023

UAW strike expands again as union says it...

October 24, 2023

Why a small China-made EV has global auto...

March 25, 2024

Chase customers sue over fees for depositing checks...

February 22, 2024

Amazon spends $2.75 billion on AI startup Anthropic...

March 28, 2024

Retail crime ‘queenpin’ to pay millions in restitution...

January 24, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Run Your Stock Portfolio Like a Pro Sports Team

    • Leadership Rotation Could Confirm Corrective Phase

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

    • 1911 Gold Temporarily Suspends Operations at True North Complex due to Bissett Evacuation Order

    • Ontario Backs Down on Key Bill 5 Provisions, Echoes BC’s Mining Debate

    • Appeals Court Grants Trump Temporary Reprieve on Tariffs, “TACO” Taunts Gain Steam

    Categories

    • Business (1,223)
    • Investing (2,503)
    • Politics (3,699)
    • Stocks (1,614)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved