On August 14, 2024, the Ashburn, Virginia development was completed.
Andrew Caballero-Reynolds | AFP | Getty Images
Despite higher interest rates, demand for mortgages started this year stronger than last year. Total mortgage applications last week were 7% higher than the same week a year ago, according to the Mortgage Bankers Association’s Seasonally Adjusted Index.
30-Year Fixed Rate Average Contract Rate mortgage loan Qualifying loan balances ($766,550 or less) increased from 6.99 percent to 7.09 percent, and scores for loans with 20 percent down dropped from 0.68 (including the origination fee) to 0.65. The rate fell 34 basis points a year ago.
“bond yield Inflation rates continue to move higher in the U.S. and abroad amid concerns about a sticky outlook and that inflation remains too high budget deficitsending mortgage rates higher for a fifth straight week. The 30-year fixed rate is currently at 7.09%, which is the highest level since May 2024,” said Joel Kan, MBA vice president and deputy chief economist.
Home loan refinancing applications are up 22% from the same week a year ago. While an increase in refinance demand may not make sense when interest rates are higher, the current volume is so low that the percentage deviation is even greater.
Mortgage applications for home purchases fell 2% from the same week a year ago. Buyers are seeing increased inventory on the market, but prices remain high. Much of the increase in inventory is due to homes staying on the market longer rather than new listings.
Due to the holidays, the weekly comparison for mortgage applications last week was too large and does not reflect market conditions.
“This time of year is a particularly volatile time for application volumes, so it may be more helpful to focus on levels rather than percentage changes,” Kan added.
Mortgage rates are essentially flat to start the week, but could see significant moves in either direction on Wednesday, when consumer price indexThe latest reading on inflation has been released.
