Posted on 03/19/2025 11:32:03 AM PDT by Miami Rebel
After a strong streak of gains, mortgage demand pulled back last week. An increase in mortgage rates, as well as rising uncertainty about the economy, were the likely culprits.
Total mortgage application volume dropped 6.2% from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.72% from 6.67%, with points climbing to 0.64 from 0.63, including the origination fee, for loans with a 20% down payment. That was the first increase in nine weeks. Rates were 25 basis points higher the same week last year.
As a result, applications to refinance a home loan fell 13% for the week but were 70% higher than the same week one year ago. Refinancing has been seeing strong gains as interest rates dropped earlier this month, but there are still precious few who can benefit from a refinance, given the record-low rates seen just three years ago. The percentages are skewing larger because the base volume is so small.
Applications for a mortgage to purchase a home were basically flat week to week, up just 0.1%. They were 6% higher than the same week one year ago.
“Purchase application volume inched up to its highest level in six weeks, led by a 3 percent increase in FHA purchase applications,” said Mike Fratantoni, senior vice president and chief economist at the MBA.
Mortgage rates moved a tiny bit lower to start this week, according to a separate survey from Mortgage News Daily, but really they have been moving around within about a 10 basis point range for close to three weeks. That could change Wednesday following the latest announcement on rates from the Federal Reserve and any unexpected commentary from its chairman.
(Excerpt) Read more at cnbc.com ...
When we bought our first house in 1992, the bank was pushing for ARMs as rates were 13%. We took the approach that we thought we could pay our mortgage at that rate and refinanced 3 or 4 times knocking our payments further down but there are cons with this approach as well.
I’m more worried about insuring my home ATM.. last year 2100..
This year 3500... I shopped around and was getting quotes from 10K to “ya no, we won’t even bother”
I’m in Central MN.. Not in a flood area (top of a 100+ ft hill. The water gets that deep someone better have an Ark) with no claims ever.
However, I might sell the place, between the taxes and insurance I can’t afford it. at todays rates the buyer will be looking at a 4K monthly payment.
best of luck to your son...you wouldn’t think this given there’s been a steady exodus of people leaving the state of New Jersey...but the housing market there is still incredibly tight...
One of my rentals is did the same thing. I ended up raising my deductible to 10,000. Brought it down about 800 a year.
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