“Conventional loan refinances, which tend to have larger balances than government loans and hence are more responsive for a given change in mortgage rates, fell to a greater extent over the week,” Fratantoni said.
The 30-year fixed mortgage rate climbed to 6.36%, the highest level since August. Fratantoni added that despite the higher rates, purchase application volumes remained relatively stable, buoyed by increased housing inventory in several markets.
However, while mortgage rates have risen, they remain low by historical standards. Fratantoni emphasized that multiple factors, beyond just rates, influence the decision to buy a home.
“The largest constraint for many prospective homebuyers over the past year had been the lack of inventory,” said Fratantoni. “Now, there are more homes available in many markets across the country, and with mortgage rates still low compared to recent history, at least some potential homebuyers are moving ahead.”
The refinance share of mortgage activity dropped to 52.4%, down from 54.9% the previous week. Adjustable-rate mortgages (ARMs) accounted for 5.9% of total applications, an increase from the prior week.
Source: mpamag.com