Mortgage Refinances up 18% as Inventories Remain Low

Source: CNBC

Mortgage applications saw a double-digit climb in the past week, with the average purchase loan size jumping to record highs as inventories dwindle. XHB is up 1.10%.

• Seasonally adjusted applications to refinance a home loan increased by 18% week to week, but 50% lower than the same week in the previous year.
• The share of mortgage activity grew to 57.3% of total applications from 55.8% in the week earlier.
• The average contract interest rate for 30-year fixed-rate mortgages jumped to 3.78% from 3.72%. Points for loans with 20% downpayment fell to 0.41 from 0.43.
• The average loan size hit $441,100, marking the highest level in the survey’s history amid low inventory levels.
• A Black Knight analysis found that some 5.9 million borrowers can still accumulate enough to make the process worth it, down from 11 million at the start of 2022.
• Mortgage applications for home purchases grew 4% for the week but down 7% from the same week in 2021.