Mortgage demand rises again as rates drop to 10-week low
foxbusiness.comFOX Business correspondent Madison Alworth shares why for many first-time homebuyers, the American dream is delayed as a result of high mortgage rates and home prices on 'Varney and Co.'
A key measure of home-purchase applications rose for the fourth straight week as an ongoing drop in mortgage rates reignited demand among consumers.
The Mortgage Bankers Association's (MBA) index of mortgage applications rose 3% last week, compared with the previous week, according to new data published Wednesday.
The data also showed that the average rate on the popular 30-year loan dropped to 7.37% — the lowest level in 10 weeks. That is also a notable drop from just one month ago, when rates hovered around 7.91%.
CREDIT CARD DEBT RISING IN DOUBLE-EDGED SWORD FOR THE ECONOMY
Available home supply remains down a stunning 45.1% from the typical amount before the COVID-19 pandemic began in early 2020, according to a recent report from Realtor.com. (David Paul Morris/Bloomberg via / Getty Images)
The decline in rates helped to spur more housing demand, with applications for a mortgage to purchase a home climbing 5% for the week. Still, application volume remains down 19% compared with the same time last year.
However, demand for refinancing plunged 9% for the week and remains up just 1% from the year-ago period. Although mortgage rates are falling, they remain 88 percentage points higher than they were a year ago, offering little incentive to homeowners who already locked in a lower rate.
«The purchase market remains depressed because of the ongoing, low supply of existing homes on the market,» said Joel Kan, MBA deputy chief economist. «Similarly, refinance activity will likely be muted for some time, even with the recent decline in
Read more on foxbusiness.com
