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

Money Control Place

Business

Mortgage demand falls to 27-year low despite drop in interest rates

by September 8, 2023
September 8, 2023
Mortgage demand falls to 27-year low despite drop in interest rates

After rising sharply for several weeks, mortgage interest rates pulled back slightly last week, but not enough to revive mortgage demand.

Total mortgage application volume fell 2.9% 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 7.21% from 7.31%, with points falling to 0.69 from 0.73 (including the origination fee) for loans with a 20% down payment.

“Mortgage applications declined to the lowest level since December 1996, despite a drop in mortgage rates,” said Joel Kan, an MBA economist. “Rates remained more than a full percentage point higher than a year ago, despite mixed data on the health of the economy and signs of a cooling job market.”

Applications to refinance a home loan — which are most sensitive to weekly interest rate changes — fell 5%, compared with the previous week, and were 30% lower than the same week one year ago.

The vast majority of borrowers today have loans with rates below 4%. Even with high rates of home equity, borrowers are more likely to take out a second loan to pull cash out, rather than lose their low rate through a cash-out refinance.

Applications for a mortgage to purchase a home fell 2% for the week and were 28% lower than the same week one year ago.

More from CNBC

Are you ready to stream some football? NFL games are shifting away from traditional TV Evergrande soars 70% leading Chinese property stocks higher after Country Garden avoids default ADL CEO says Elon Musk’s insinuation to sue over defamation is merely a ‘threat of a frivolous lawsuit’

“Prospective buyers remain on the sidelines due to low housing inventory and elevated mortgage rates,” Kan added.

Mortgage rates turned higher again to start this week, and more economic data out in the coming days could impact rates further. While they have moved in a narrow range the past few weeks, 7% appears to be the new normal. This has thrown cold water on home prices, which had been rising for much of the year but which appear to be easing now yet again.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Crucial Insights: How Rising Rates IMPACT You!
next post
White Gold Corp. Intersects Broad Zones of Near Surface Gold Mineralization including 3.38 g/t Au over 53 m at Betty Ford Target, and 1.4 g/t Gold over 58.4 m at Vertigo Target, White Gold District, Yukon, Canada

Related Posts

Red Lobster says unlimited shrimp promotion was too...

December 2, 2023

Taylor Swift agreed to FTX partnership, but the...

July 7, 2023

Waiting for your tax refund? There are other...

February 6, 2024

Starbucks to face lawsuit alleging its Refresher fruit...

September 22, 2023

Target rolls back DEI initiatives, the latest big...

January 25, 2025

Several Buy Buy Baby and Harmon stores to...

August 19, 2023

Spirit Airlines, fresh from bankruptcy, is ready to...

March 14, 2025

Trial of former FTX head Sam Bankman-Fried set...

October 3, 2023

Chrysler recalling 338,000 Jeep Grand Cherokees over potentially...

March 2, 2024

‘Lazy girl jobs’ are trending in rally against...

August 18, 2023

    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

    • Joe Rabil’s Undercut & Rally Pattern: From DROP to POP

    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New Rally?

    • Coelacanth Energy

    • Jeffrey Christian: Gold, Silver, PGMs — Short-term Prices and Key Drivers

    • Ericsson, Rogers Launch Canada’s First Underground 5G Network for Smart Mining

    • Crypto Market Recap: Bitcoin Price Stalls as Fed Holds Rates Steady, Circle Shares Jump

    Categories

    • Business (1,259)
    • Investing (2,583)
    • Politics (3,699)
    • Stocks (1,669)
    • 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