Mortgage rates slipped and ended the months of successive increases, following the rising tensions between Russia and Ukraine drove a run on the safer bond markets.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to 4.09% from 4.15%.
- Points for loans with a 20% was unchanged at 0.44, with the rate at 83 basis points lower a year ago.
- Refinancing demand increased by 9% last week versus the previous week, but application volume remained half of the comparable week last year.
- Analysts said the latest decline is the first in 12 weeks, as the Russian conflict drove investors out to look for quality and dragged US Treasury yields.
- Mortgage applications increased 9% from the past week but were 7% lower than the same week in the past year, attributed to supply hitting the market.
- Mortgage rates have since jumped by over 25 basis points in two days, as inventors shift from bonds and drive yields higher.
XHB is up 0.91%, while ITB is up 3.15% premarket.
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