“Mortgage rates continued to move higher last week, reaching their highest levels since late 2023 and putting a damper on applications activity,” MBA chief economist Joel Kan said in a news release emailed to MPA. “The 30-year fixed rate increased for the third consecutive week to 7.24%, the highest since November 2023.”
The refinance index dropped 6% from the previous week, although it was still 3% higher than the same week last year. Meanwhile, the seasonally adjusted purchase index declined 1% from the previous week, while unadjusted purchase applications experienced a slight increase of 0.2% yet were 15% lower than the same week a year ago.
Kan noted that the rise in rates contributed to a decline in purchase applications, with potential homebuyers pausing their decisions due to worsened affordability and low housing supply.
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“The ARM share of applications increased to 7.6%, consistent with the upward trend in rates, as buyers look to reduce their potential monthly payments,” he said.
Source: mpamag.com