Rates Dip, Mortgage Applications Hit Three-Month Low
Mortgage rates dropped ever so slightly this week, this time hitting an average 2.99% on 30-year, fixed-rate loans. That’s down from the 3.01% seen the week prior, but still well above the 2.77% rate seen this summer.
Despite the small dip, mortgage applications retreated, falling nearly 7% over the week. According to the Mortgage Bankers Association, purchase loan applications were down 2%, while refinances fell a whopping 10%.
“Mortgage applications to refinance dropped almost 10% last week to the lowest level in three months,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Higher rates are reducing borrowers’ incentive to refinance, as declines were seen across all loan types.”
Despite the pullback in market activity, home prices still continued their rise. The average loan amount this week was $410,000, according to MBA.
“With home-price appreciation and sales prices remaining very elevated, applications for higher balance, conventional loans still dominate the mix of activity,” Kan said.
More in mortgage & housing news
- The share of mortgage loans in forbearance is continuing to fall. According to MBA, just 2.96% of all mortgage loans are in forbearance, amounting to around 1.4 million homeowners.
- A new survey from Zillow was released this week, revealing insights into recent home sale trends. According to the findings, nearly a quarter of all sellers this year received four or more offers on their home. Nearly half had at least one offer fall through, and almost three-fourths received at least one all-cash offer.
- Redfin is expanding its self-touring options, which all buyers to tour vacant Redfin-listed properties using only an app. The offering is currently available in 22 different markets.
- The Department of Housing and Urban Development has issued a new rule to protect renters in government-subsidized housing. Under the new policy, landlords must provide non-paying tenants at least a 30-day notice and give the tenant information about federal emergency rental assistance before moving to evict.
- The CoreLogic Home Price Index was released this week, showing national prices up 18% over the year. The company is forecasting just a 2.2% bump by this time next year.
This week in mortgage rates
Mortgage rates fell slightly on 30- and 15-year fixed-rate loans this week, but increased on 5/1 ARMs.
Here’s how rates looked for each loan type:
- Conforming 30-year, fixed-rate loans: 2.99% (down from 3.01%)
- 15-year, fixed-rate loans: 2.23% (down from 2.28%)
- 5/1 adjustable-rate loans: 2.52% (up from 2.48%)
Make sure to check back here next week for the latest mortgage rates and news.
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