Mortgage rates crept up last week, resulting in less demand for mortgages and refinancing. Overall mortgage application volume dropped 5.1% from the previous week, according to data from the Mortgage Bankers Association. Mortgage rates went from 3.33% to 3.36% for 30-year fixed-rate mortgages with conforming loan balances of $548,250 or less, according to CNBC. Refinance applications dropped 5% for the week compared to last, but dropped 20% compared to this time last year. CNBC says applications to refinance are at the slowest pace since June 2020.
“Refinance applications declined for the fifth straight week, but there was a gain in VA loan activity,” said Joel Kan, an MBA economist. “Overall, refinance demand has decreased, with volume over the past 10 weeks down by more than 30%.”
Mortgage applications to purchase a home fell 5% for the week and were 51% higher than a year ago. That annual comparison will be very large for the next few months, as the housing market stalled almost completely last year at this time, when the pandemic shut down the economy. It rebounded dramatically at the start of the summer.
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