Mortgage Applications Slip as Interest Rates Grow

Source: CNBC

Mortgage applications posted double-digit declines in the past week, as demand waned with the continued increase in interest rates. XHB is up 0.67% premarket.

• Mortgage applications to purchase a home in the past week recorded a 10% decline from the previous week and a 12% drop from the previous year.
• Applications to refinance a home loan slipped 7% from the previous week and 52% from the same week in the previous year.
• Mortgage activity accounted for 56.2% of total applications, down from 57.3% the past week.
• The average contract interest rate for 30-year fixed-rate mortgages grew to 3.83% from 3.78%. Points for loans with a 20% downpayment fell to 0.40.
• The average loan size grew to a record-high $446,000, showing that the majority of the buying is on the higher end of the market.
• January’s total home inventory for sale recorded a 28% decline from the same month last year, with new listings down 9% to mark the second month of declines.