- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 7.24percent % from 7.13%
- Applications for a mortgage to purchase a home fell 1% for the week and were 15% lower than the same week one year ago.
- The ARM share of mortgage demand rose last week, which often happens when interest rates rise.
A residential real estate sold sign is seen in Washington, D.C.
Mortgage rates rose for the third straight week last week, hitting the highest level since November. As a result, mortgage application demand dropped 2.7% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 7.24% from 7.13%, with points increasing to 0.66 from 0.65 (including the origination fee) for loans with a 20% down payment.
Applications to refinance a home loan, which are most sensitive to weekly moves in interest rates, fell 6% for the week and were 3% higher than the same week one year ago.
Applications for a mortgage to purchase a home fell 1% for the week and were 15% lower than the same week one year ago. As home prices rise along with interest rates, potential buyers’ purchasing power are suffering a double whammy.
“Purchase applications declined, as home buyers delayed their purchase decisions due to strained affordability and low supply,” said Joel Kan, MBA’s deputy chief economist.
As often happens when affordability takes a hit, the adjustable-rate mortgage share of applications rose last week to 7.6%. ARMs offer lower rates and can be fixed for up to 10 years, although they are considered riskier.
Mortgage rates have eased very slightly so far this week, but there hasn’t been much economic data to influence them. That will change next week, when the all-important monthly employment report is released.
News Related-
Russian court extends detention of Wall Street Journal reporter Gershkovich until end of January
-
Russian court extends detention of Wall Street Journal reporter Evan Gershkovich, arrested on espionage charges
-
Israel's economy recovered from previous wars with Hamas, but this one might go longer, hit harder
-
Stock market today: Asian shares mixed ahead of US consumer confidence and price data
-
EXCLUSIVE: ‘Sister Wives' star Christine Brown says her kids' happy marriages inspired her leave Kody Brown
-
NBA fans roast Clippers for losing to Nuggets without Jokic, Murray, Gordon
-
Panthers-Senators brawl ends in 10-minute penalty for all players on ice
-
CNBC Daily Open: Is record Black Friday sales spike a false dawn?
-
Freed Israeli hostage describes deteriorating conditions while being held by Hamas
-
High stakes and glitz mark the vote in Paris for the 2030 World Expo host
-
Biden’s unworkable nursing rule will harm seniors
-
Jalen Hurts: We did what we needed to do when it mattered the most
-
LeBron James takes NBA all-time minutes lead in career-worst loss
-
Vikings' Kevin O'Connell to evaluate Josh Dobbs, path forward at QB