MortGage Rates Hit Highest Level Since July, Crushing Application Demand

MortGage Rates Last Week Moved Higher for the Fourth Week in a Row. That caused alrady very weak mortgage demand to drop even further. Total MortGage Application Volume Fell 3.7% Compared with the Previous Week, According to the MortGage Bankers Association’s Seasonally Adjusted Index. An additional adjustment was made for the new year’s holiday.

The Average Contract Interest Rate for 30-Year Fixed-Rate Mortgages with Conforming Loan Balans ($ 766,550 or Less) Increased to 6.99% from 6.97%, with points decreasing to 0.72 origination fee) for loans with a 20% down Payment. That is the highest rate since July 2024.

Applications to refinance a home loan rose 2% from the previous week but 7% lower than the same week one year ago. Rates are now 18 Basis points higher than they were one year ago. As for the weekly gain, volume in refinance is so low right now, that percentages are skeking larger than they they normally would.

Applications for a mortgage to purchase a home fell 7% for the week and was 15% lower than the same week one year ago. There is Considerably More Supply of Homes for Sale Now

“Purchase Applications Declined for Both Conventional and Government Loans and Dropped to the Slowest Weekly Pace Since Febrary 2024,” said joel kan, vice presiding and deposit chiff Economist AT the Mba. “Refinance Applications Increased Despite Higher Rates, but the increase was compared to recent low levels and wasteryly driven by an increase in va refinance, which continue to showkly to showing

MortGage Rates Moved Higher to Start this Week, According to a Separate Survey from Mortgage News Daily, which had the 30-year fixed average at 7.14% on tuesday. Economic data was the driving factor.

“ISM Services’ Inflation Component Was One of the Worst Offenders, But Higher Job Openings Didn’T Help. The spike in yields in yields was instantaneous but Fairly Well Contained,” Noteed Matthew Grama MND.

More Economic Data Comes wedding with the release of the federal reserve’s meeting minutes and friday with the all-Important monthly Employment report. Thos will eater keep rates on an upward Trajectory or, perhaps, change the trend for the new year.