A “For Sale” sign is seen in front of a house on Wednesday, September 18, 2024 in Atlanta, Georgia, USA.
Elijah Novelage | Elijah Novelage Bloomberg | Getty Images
Mortgage rates rose last week for the fourth time in five weeks, causing refinances to fall back again. Total mortgage applications were essentially flat, down 0.1% from the previous week, according to the Mortgage Bankers Association’s Seasonally Adjusted Index.
The average contract interest rate for a 30-year fixed-rate mortgage with a qualifying loan balance ($766,550 or less) increased from 6.52% to 6.73%, and the payment for loans with 20% down increased from 0.64 (including origination fee) to 0.69. This is the highest level since July this year.
Home loan refinance applications fell 6% this week but were up 84% from the same week a year ago, when 30-year fixed rates were 113 basis points higher.
“After a brief burst in September when interest rates fell by nearly 60 basis points, overall applications fell 27% as refinances declined. Government refinances accounted for a large portion of the decline, down 12% from last week, MBA Economics Joel Kan wrote in a press release.
Mortgage applications for home purchases increased 5% this week and were 10% higher than the same week a year ago. Real estate brokerages report a recent surge in homebuyer interest as the supply of homes for sale increases. Some potential buyers may want to lock in rates before market volatility occurs around Election Day.
Mortgage rates started the week higher. The average 30-year fixed rate rose more than 7% on Tuesday, according to a separate Mortgage News Daily survey.
“Volatility is expected to remain elevated through at least the second half of next week, with considerable volatility risk on a daily basis between now and then,” MND Chief Operating Officer Matthew Graham wrote. “With jobs reports, the election and Fed announcements, The highest risk days are this Friday, next Wednesday and next Thursday.”
