Mortgage applications rose slightly as mortgage rates peaked in 2023, but were still very low last week.
Data from the Times showed that mortgage applications rose 0.9% in the week ending July 7 from the previous week. Mortgage Bankers Association.
“As upcoming economic data continue to send out mixed signals about the economy and the market expects the Federal Reserve to hold interest rates longer to keep inflation under control, The overall effect pushed U.S. Treasury yields higher last week, as did all mortgage rates in our study, with the 30-year fixed rate rising to 7.07%, its highest level since November 2022.” said Joel Kang. MBAsVice President and Deputy Chief Economist of “The jumbo rate also rose to 7.04%, setting a new record for the jumbo series since 2011.”
Mortgage rates rose dramatically last week, with the 30-year fixed rate rising from 6.85% to 7.07%, according to MBA data. The jumbo rate exceeded the conformance rate for five consecutive weeks. Interest rates on jumbo loan balances (over $726,200) rose to 7.04% from 6.97% last week, according to MBA data.
and daily mortgage news, Mortgage rates rose 2 basis points on Wednesday to 7.09%.
Purchase requests increased, with the purchase index up 2% from a week ago and 26% below last year’s level on an unseasonally adjusted basis. Last week, refinancing applications were down 1% from the previous week and down 39% from the same week a year ago. Joel Kang said the refinancing index hit its lowest level since early June as interest rates, terms and cash-out refinancing demand remain very low with mortgage rates above 7%.
Refinancing as a percentage of mortgage activity fell to 26.8% of total applications from the previous week’s 27.4%.
The increase in purchase activity was primarily driven by an increase in both FHA and VA purchase offers.of Federal Housing Administration The share of loans rose to 13.3% from 13% in the previous week.of US Department of Veterans Affairs The share of loans rose to 12.6% from 11.7% the week before.and the US Department of Agriculture Loan share remained unchanged at 0.4% of total applications.
Last week, variable rate mortgages rose to 6.6% of total loan applications. The average contract rate for 5/1 ARM was 6.24%, up from 6.00% the previous week.