Overview of Mortgage Application Trends#
Last week, mortgage applications saw a decline of 1.6% as interest rates continued to climb, as reported by the Mortgage Bankers Association’s seasonally adjusted index.
Rising Interest Rates#
The average interest rate for 30-year fixed-rate mortgages with loan balances of $832,750 or less increased slightly to 6.37%, up from 6.35%. Points, which are upfront fees paid to lower the interest rate, remained steady at 0.61 for loans with a 20% down payment.
Refinance and Purchase Applications#
Refinance applications experienced a notable drop of 4% for the week. However, they are still 51% higher compared to the same week last year, when the 30-year fixed rate was approximately half a percentage point higher. On the other hand, purchase applications saw a slight increase of 1% for the week and are 21% higher year over year. This uptick is attributed to more housing inventory entering the market, along with buyers adapting to ongoing news regarding international events, such as the conflict in Iran.