**Mortgage Market Sees Slight Uptick in Rates, Refinance Demand Cools**
The mortgage market experienced a slight increase in rates last week, causing a 1.3% decline in total mortgage application volume, according to the Mortgage Bankers Association’s latest report. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 6.14%, up from 6.13% the previous week.
Despite the slight rate hike, refinance applications remained strong, falling only 3% for the week. This represents a significant 186% increase compared to the same period last year. Many borrowers who took out mortgages in the past year or two may still be able to benefit from refinancing to today’s lower rates.
On the other hand, applications for home purchases rose 1% for the week, a 9% increase from the same time last year. The fall market appears to be gaining momentum, with real estate brokerages reporting an uptick in home tours. However, some buyers may be waiting on the sidelines, anticipating further rate declines in the coming months.
“Increasing inventories of new and existing homes are providing potential buyers with more options, and slightly lower mortgage rates are improving affordability,” said Mike Fratantoni, MBA’s SVP and chief economist.
Mortgage rates dipped slightly at the start of this week, driven by declining bond yields following Middle East tensions. The next significant move in interest rates is expected to come with the release of the monthly employment report on Friday.
Leave a Reply