A panel for sale is exhibited outside a house for sale on August 16, 2024 in Los Angeles, California.
Patrick T. Fallon | AFP | Getty images
Mortgage rates did not move last week, but the demand for new real estate loans continued to weaken. House buyers and current owners are hampered by higher interest rates today.
The total volume of mortgage requests decreased by 2% compared to the previous week, according to the adjusted index of the season of the Deathgage Bankers Association.
The average interest rate of the contract for mortgage loans fixed at 30 years with compliant loan sales ($ 766,550 or less) remained unchanged at 7.02%, with points passing to 0.63 against 0 , 62 (including original fees) for loans with a deposit of 20%.
Refinancing requests for a mortgage dropped 7% for the week and was 5% higher than the same week a year ago. Interest rates are now 24 higher base points than they were a year ago, so there are some precious people who can benefit from it. The vast majority of owners have mortgages with prices much lower than what is offered today.
Requests for a mortgage to buy a house dropped by 0.4% compared to a week earlier and were 7% lower than the same week a year ago.
“The purchase activity has decreased slightly, but requests for loan purchase of the FHA were a bright point, increasing by 2%,” said Joel Kan, vice-president of the MBA and deputy chief economist.
“New and existing sales at home have finished 2024 on a solid note, and if mortgage rates continue to stabilize and inventories for sale stand out, we expect a progressive collection in the purchase activity in the to come. “
Mortgage rates have not evolved either to start this week either, and the meeting of the Wednesday federal reserve should not bring surprises or new negotiables.
“Even Powell would find it difficult to make things happen by considering the slightly positive signal of inflation data and uncertainty during policy as a counterweight,” wrote Matthew Graham, Director of Operation at Mortgage News Daily . “That said, you can never really exclude a volatile reaction to a Powell supplier, but the chances are certainly lower this time.”
