The average contract interest rate for 30-year, fixed-rate mortgages with conforming loan balances of $726,200 or less fell from 6.40% to 6.30% last week, and as a result, mortgage applications to purchase a home rose 8% compared with the previous week. While falling rates can be partially attributed to cooling inflation, a slower job market is also forcing the Federal Reserve to slow its rate hikes, CNBC reports.
Refinance demand was flat week to week, signaling hesitancy among sellers opting to stay in place rather than listing their homes and settling for higher rates.
“Incoming data last week showed that the job market is beginning to slow, which led to the 30-year fixed rate decreasing to 6.30% — the lowest level in two months,” said Mike Fratantoni, MBA’s SVP and chief economist.
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