“Mortgage rates were little changed last week, with the 30-year conforming rate declining slightly to 7.04% but remaining about a quarter percentage point higher than the start of the year,” Fratantoni said in the weekly report. “Higher rates in recent weeks have stalled activity, and last week it dropped more for those seeking FHA and VA refinances.”
Frantantoni noted that purchase applications continued to show some signs of resilience, with new home purchase interest up 19% year-over-year. However, rising rates continue to be a major hurdle for would-be buyers. FHA and VA borrowers, who often rely on these programs for their affordability advantages, are feeling the squeeze especially hard.
“This disparity continues to highlight how the lack of existing inventory is the primary constraint to increases in purchase volume. However, mortgage rates above 7% sure don’t help,” he added.
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The share of refinancing in the total mortgage applications decreased to 31.2%, down from 32.6% the week before. On the other hand, adjustable-rate mortgages (ARMs) increased to 7.5% of all applications, suggesting borrowers are looking for different ways to navigate the current high-rate environment.
Source: mpamag.com