The Mortgage Bankers Association (MBA) has released its weekly application survey, revealing a significant climb in mortgage rates that has impacted refinance demand, while purchase applications have shown resilience. Last week, mortgage rates reached their highest levels since January, with the 30-year fixed rate rising to 6.98%, marking its third consecutive weekly increase. Joel Kan, MBA’s Vice President and Deputy Chief Economist, attributed this rise to increasing Treasury yields and market volatility that has widened the mortgage-Treasury spread.
The data indicates that refinance applications dropped by 7% from the previous week, while purchase applications saw a 3% increase. Notably, purchase applications have surged 18% compared to the same week last year, although refinance activity still remains 37% higher than last year, with that gap narrowing as refinance demand softens.
In terms of mortgage rate specifics, current rates from the MBA show the following:
– 30yr Fixed: 6.98% (+0.06) | Points: 0.67 (−0.02)
– Jumbo 30yr: 6.93% (−0.01) | Points: 0.69 (−0.03)
– FHA: 6.66% (+0.06) | Points: 0.95 (−0.01)
– 15yr Fixed: 6.23% (+0.02) | Points: 0.67 (−0.05)
– 5/1 ARM: 6.22% (+0.06) | Points: 0.46 (+0.10)
Despite the upward trend in mortgage rates, there are early signs of stabilization as MND’s daily rate tracking indicates a drop at the start of this week, which could ease some pressure on refinance demand. As the market continues to fluctuate, the resilience in purchase applications amid rising inventory presents a more proactive outlook for homebuyers.
Overall, while challenges remain in the mortgage market, particularly for refinancing, the uptick in purchase applications is a hopeful signal for the housing market’s continued activity. This trend may reflect a broader resilience in homebuying despite adverse rate conditions.