Mortgage demand surges to 5-week high after recent drop in mortgage rates
FOX 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 to the highest level in five weeks as consumer demand roared back to life amid a recent drop in mortgage rates.
The Mortgage Bankers Association's (MBA) index of mortgage applications rose 2.8% last week, compared with the previous week, according to new data published Wednesday. It marked the second straight week of gains.
The data also showed that the average rate on the popular 30-year loan held steady at 7.61% — a notable drop from just three weeks ago, when rates hovered around 7.91%.
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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 also rising 3% for the week. Still, application volume remains down 12% compared with the same time last year.
Demand for refinancing also inched higher last week, rising 2% from the previous week, according to the survey. Compared with the same time last year, refinance applications are up 7% from the same time one year ago.
«Both purchase and refinance applications increased to the highest weekly pace in five weeks but remain at very low levels,» said Joel Kan, MBA deputy chief economist. «Despite the recent downward trend, mortgage rates at current levels are still challenging for many prospective homebuyers and
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