On August 14, 2024, the Ashburn, Virginia development was completed.
Andrew Caballero-Reynolds | AFP | Getty Images
Mortgage demand fell again last week despite no change in mortgage rates.
Total mortgage applications fell 6.7% from the previous week, hitting the lowest level since July, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for a 30-year fixed-rate mortgage with qualifying loan balances ($766,550 or less) remained unchanged at 6.52 percent, with points falling from 0.65 (including the origination fee) to 0.64 for loans with 20 percent down.
Refinancing demand continued to lead the decline, falling 8% this week. However, this number is 90% lower than the same week a year ago. Mortgage rates were 138 basis points higher this time last year, nearly 8%.
Mortgage applications for home purchases fell 5% this week and were just 3% higher than the same week a year ago. The interest rate environment for potential homebuyers is much better now than it was a year ago, but home prices are also higher. Some real estate agents say buyers are also taking a wait-and-see approach ahead of next month’s presidential election.
“For-sale inventory has begun to decrease and home price growth has slowed in some markets, which combined with lower interest rates has given buyers more options,” MBA economist Joel Kan said in a press release expressed in.
However, some real estate agents say potential buyers are taking a wait-and-see approach ahead of next month’s presidential election.
Mortgage rates are starting to move sharply higher this week, with the average 30-year fixed rate jumping 14 basis points on Monday to the highest level since July, according to a separate Mortgage News Daily survey. They continued to edge higher again on Tuesday.
“Underlying market moves cannot be easily attributed to any single headline or economic report,” wrote Mortgage News Daily chief operating officer Matthew Graham. “The leading theories involve changes in election odds and the bond market pipeline The more profound aspects of it.”
