Record-low mortgage rates are obviously not as impressive as they used to be, likely because rates have been so low for so long.
The average contract interest rate for a 30-year fixed-rate mortgage with a loan balance corresponding to $ 510,400 over the previous year decreased to 3.05% from 3.10% the previous week, while the points, including the basic fee, rose from 0.46 to 0.5%. 20% reduced. payment. This is the lowest in the 30-year history of the MBA survey. The rate was about 4% a year ago.
According to the seasonally adjusted index, applications for home loan refinances, which are usually sensitive to weekly rate moves, still fell 7% for the week, although they were up 52% from a year earlier .
Joel Kahn, an MBA economist, said, “There are indications that the refinance rate is not declining at par with the rates of home purchase loans, and that may explain the decline in refinancing last week.” “Many lenders are still operating at full capacity and going through operational challenges, ultimately limiting the number of applications they are able to accept.”
Mortgage applications to buy the house fell 2% for the week and were 22% higher than before. This is a slight annual gain compared to the previous week. Housing demand has been incredibly strong in recent months, as pent-up demand from the epidemic spring combined with a consequent desire for large suburban homes.
However, there is less supply than demand, and it is kindling a fire under domestic prices, rising in double digits in some markets. Most of the sales activity is now on the high end of the market, where there is excess supply.
“There has been an increase in demand even at the beginning of the year, but as action continues at higher price levels, the average debt balance is close to an all-time survey high,” Kahn said.