Mortgage Rates Take Minor Dip; Purchase Loan Activity Falls
Mortgage rates held steady yet again, this time averaging 3.10% on 30-year loans. According to Freddie Mac, that’s down just barely from last week’s 3.11%.
Despite the small dip, purchase loan applications fell 5% for the week.
“The purchase market was slower last week, with applications falling after four consecutive increases,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Activity is still close to the highest level since March 2021, which is a positive sign as the year comes to an end. Purchase activity continues to be constrained by a lack of inventory, combined with rapid rates of home-price appreciation and mortgage rates higher than in 2020.”
Refinances, on the other hand, actually had quite a strong week. Homeowners responded to the minor rate drop, and applications to refinance a loan jumped 9%.
“Mortgage rates declined for the first time in a month, prompting a pickup in refinancing, with government refinances increasing more than 20% over the week,” Kan said. “Borrowers are continuing to act on these opportunities, but if rates trend higher as MBA is forecasting, the window of opportunity to refinance will continue to get smaller.”
More in mortgage & housing news
- According to the latest Mortgage Monitor Report from Black Knight, tappable equity has jumped 32% this year, rising by $2.3 million. The average homeowner now has $178,000 in equity — up $53,000 across the year.
- Zillow released its predictions for 2022 this week, and the biggest takeaway? It “will fall just short of record-breaking.” The company expects strong sales and price growth, as well as a surge in Sun Belt purchases.
- Salt Lake City is going to be the hottest market of the year next year, according to Realtor.com. The city should see a 15% spike in sales and an 8.5% increase in home prices. Other cities expected to see growth include Boise City, Idaho; Spokane, Washington; Indianapolis; and Columbus, Ohio.
This week in mortgage rates
Mortgage rates fell slightly on all loan products this week.
Here’s how rates looked for each loan type:
- Conforming 30-year, fixed-rate loans: 3.10% (down from 3.11%)
- 15-year, fixed-rate loans: 2.38% (down from 2.39%)
- 5/1 adjustable-rate loans: 2.45% (down from 2.49)
Make sure to check back here next week for the latest mortgage rates and news.
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