CNBC – Mortgage rates just continue to climb higher, taking a particularly big leap last week. As a result, total mortgage demand fell 6% 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) increased to 7.53% from 7.41%, with points rising to 0.80 from 0.71 (including the origination fee) for loans with a 20% down payment. That rate was 6.75% the same week one year ago.
Applications to refinance a home loan dropped 7% for the week and were 11% lower than the same week one year ago. Refinances now make up less than one-third of all mortgage applications. Just two years ago, when rates were setting multiple record lows, refinance demand made up roughly three-quarters of all mortgage applications.
Applications for a mortgage to purchase a home fell 6% for the week and were 22% lower than the same week one year ago.
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“The American people are smart as hell and know what their interests are.”
“I think they know they’re better off financially than they were before.”
“It’s a fact.”
– Joseph Robinette Biden, Junior, 7 October 2023