Currently Reading

Refinance Demand Jumps After Slight Drop in Mortgage Rates


Refinance Demand Jumps After Slight Drop in Mortgage Rates

Mortgage rates made a sharp U-turn after logging consecutive weekly gains, pushing borrowers back into the housing fray

March 10, 2022
Refinance mortgage clock

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $647,200 or less dropped from 4.15% to 4.09% for loans with a 20% down payment following Russia’s invasion of Ukraine, causing a subsequent 9% jump in refinance demand last week, CNBC reports. The slight drop in mortgage rates marked the first decrease in 12 weeks, and borrowers were quick to act.

Mortgage rates surged yet again at the start of this week, however, jumping more than 25 basis points in just 2 days. According to leading markets economists, more gains could mean higher inflation, greater volatility, and a potential drop in demand ahead.

Investors are moving away from bonds, causing yields to rise, despite the ongoing crisis in Ukraine, which caused rates to drop at the outset.

“While the Ukraine situation does indeed drive demand for bonds, the associated inflation implications are simultaneously pushing demand away,” wrote Matthew Graham, chief operating officer at Mortgage News Daily. “The net effect was a move back up to the highest mortgage rates since early 2019.” 

Read more

Related Stories


As the Housing Market Loses Steam, a Growing Number of Sellers Are Dropping Their Asking Prices

The Fed's most recent mortgage rate hike is putting a damper on home sales, and in order to attract remaining buyers, sellers are increasingly slashing their asking prices

Housing Markets

The Nation’s Hottest Housing Markets Are Finally Cooling

Local housing inventories are climbing in some of the nation's most in-demand metros and suburbs, signaling greater affordability and more opportunities for home purchases in the near future


Consumer Confidence Dropped to 16-Month Low in June

Fast-rising inflation is putted increased financial pressure on Americans who are struggling to afford everything from gas to monthly mortgage payments


More in Category


Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.