• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Mortgage demand surges as interest rates ease off recent highs
Editor's Pick

Mortgage demand surges as interest rates ease off recent highs

by June 15, 2023
by June 15, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Mortgage rates pulled back for the second straight week last week, and it was enough to get both current and potential homeowners on the phone with their lenders.

Mortgage application volume rose 7.2% last week, 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 ($726,200 or less) decreased to 6.77% from 6.81% in the prior week, with points falling to 0.65 from 0.66 (including the origination fee) for loans with a 20% down payment.

Applications to refinance a home loan rose 6% for the week but were 41% lower than the same week one year ago. While rates pulled back, they are still more than a full percentage point higher than they were a year ago and more than twice what they were in the first two years of the Covid pandemic, when there was a refinance boom. Most borrowers today have lower rates than what is currently available and therefore do not want to lose those rates even for a cash-out refinance.

Applications for a mortgage to purchase a home increased 8% for the week but were 27% lower than the same week one year ago.

“Rates that are still more than a percentage point higher than a year ago, and low for-sale inventory continue to constrain homebuying activity in many markets,” said Joel Kan, an MBA economist, in a press release. “The average loan size on a purchase loan decreased for the third straight week, as we continue to see more first-time homebuyer activity in the purchase market.”

More from CNBC

Why economists say it’s a near certainty that housing inflation will soon fall Covid vaccine maker Novavax sees a pathway to survival – but it won’t be easy Google’s return-to-office crackdown gets backlash from some employees: ‘Check my work, not my badge’

Mortgage rates haven’t moved much this week, but that could change Wednesday afternoon when the Federal Reserve announces the results of its latest policy meeting and updated rate forecasts.

“Some say the Fed will use those forecasts to telegraph another rate hike or two in 2023. Although the Fed Funds Rate doesn’t directly dictate mortgage rates, such a move would still put quite a bit of upward pressure on interest rates of all shapes and sizes,” wrote Matthew Graham, COO of Mortgage News Daily.

This post appeared first on NBC NEWS
You Might Also Like
  • Amazon same-day prescription delivery expanding to nearly half of U.S. in 2025
  • UAW, U.S. dealers increase criticism of Stellantis CEO over cuts, sales declines
  • Florida’s insurance industry is in flux as Idalia cleanup begins
  • Ticketmaster’s hidden fees remain common long after it vowed to scrap them
Share
0
FacebookTwitterPinterestWhatsapp

previous post
These 20 Republicans saved Adam Schiff from censure over Trump-Russia ‘lies’
next post
Tentative deal reached to get UPS drivers air-conditioned trucks ahead of strike threat

You may also like

In wake of L.A. wildfires, a diverse small business community...

March 3, 2025

Goldman Sachs rolls out an AI assistant for its employees...

January 22, 2025

Amazon increases average pay for warehouse workers and adds free...

September 19, 2024

Oil prices hit three-month lows, head for weekly loss as...

May 25, 2024

Willow Bay and Bob Iger to take controlling stake in...

July 18, 2024

Walmart employees are now wearing body cameras in some U.S....

December 18, 2024

Shares of generator maker soar, insurance stocks fall as Hurricane...

October 8, 2024

We found many loose bolts on our Max 9 planes...

January 25, 2024

Paramount special committee extends Skydance ‘go shop’ period as it...

August 23, 2024

CFPB expands oversight of digital payments services including Apple Pay...

November 22, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025
    • Small Caps Are Rotating In — Here’s Why It Matters

      July 9, 2025
    • Amazon extends Prime Day discounts to 4 days as retailers weigh tariffs and price increases

      July 9, 2025
    • Breakout Watch: One Stock in Each Sector to Watch Now

      July 9, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,630 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,575 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,167)
    • Investing (538)
    • Stock (2,660)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025
    • Small Caps Are Rotating In — Here’s Why It Matters

      July 9, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,167)
    • Investing (538)
    • Stock (2,660)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    ESPN plans to add user-generated content...

    February 20, 2025

    Dow closes at record high above...

    May 19, 2024

    Why regulators seized Signature Bank in...

    March 16, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here