Thrifty Banker
  • Politics
  • Business
  • World
  • Investing
  • Politics
  • Business
  • World
  • Investing

Thrifty Banker

Business

Mortgage demand drops to 27-year low despite drop in interest rates

by September 7, 2023
September 7, 2023
Mortgage demand drops to 27-year low despite drop in interest rates

After rising sharply for several weeks, mortgage interest rates pulled back slightly last week, but not enough to revive mortgage demand.

Total mortgage application volume fell 2.9% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 7.21% from 7.31%, with points falling to 0.69 from 0.73 (including the origination fee) for loans with a 20% down payment.

“Mortgage applications declined to the lowest level since December 1996, despite a drop in mortgage rates,” said Joel Kan, an MBA economist. “Rates remained more than a full percentage point higher than a year ago, despite mixed data on the health of the economy and signs of a cooling job market.”

Applications to refinance a home loan — which are most sensitive to weekly interest rate changes — fell 5%, compared with the previous week, and were 30% lower than the same week one year ago.

The vast majority of borrowers today have loans with rates below 4%. Even with high rates of home equity, borrowers are more likely to take out a second loan to pull cash out, rather than lose their low rate through a cash-out refinance.

Applications for a mortgage to purchase a home fell 2% for the week and were 28% lower than the same week one year ago.

More from CNBC

Are you ready to stream some football? NFL games are shifting away from traditional TV Evergrande soars 70% leading Chinese property stocks higher after Country Garden avoids default ADL CEO says Elon Musk’s insinuation to sue over defamation is merely a ‘threat of a frivolous lawsuit’

“Prospective buyers remain on the sidelines due to low housing inventory and elevated mortgage rates,” Kan added.

Mortgage rates turned higher again to start this week, and more economic data out in the coming days could impact rates further. While they have moved in a narrow range the past few weeks, 7% appears to be the new normal. This has thrown cold water on home prices, which had been rising for much of the year but which appear to be easing now yet again.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
VVC Resources Ramps Up Drill Work at Syracuse Helium Project, Says Exec
next post
Tesla releases refreshed Model 3 with longer driving range in China

Related Posts

Federal Reserve official agrees the central bank can...

September 6, 2023

Macy’s is closing 150 stores nationwide as it...

February 28, 2024

Southwest Airlines and pilots’ union reach preliminary labor...

December 21, 2023

Disney touts $40 billion economic impact in Florida...

November 17, 2023

Law firm rescinds job offers to Harvard students...

October 19, 2023

Why the Fed keeping rates higher for longer...

April 25, 2024

Bad economic news has been good for stocks,...

June 6, 2024

Trump Media tells shareholders how to block their...

April 20, 2024

UAW loses Alabama union vote seen as bellwether...

May 18, 2024

Are consumers pulling back on spending? It depends...

May 21, 2024

    Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular

    • 1

      Top 10 Countries for Natural Gas Production (Updated 2024)

      April 6, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Top 10 Uranium-producing Countries (Updated 2024)

      April 18, 2024
    • 4

      A GOP operative accused a monastery of voter fraud. Nuns fought back.

      January 3, 2025
    • 5

      Australian abolitionist, Grace Forrest, receives coveted ‘Freedom from Fear’ award

      April 13, 2024
    • 6

      Top 9 Nickel-producing Countries (Updated 2024)

      April 23, 2024
    • 7

      LME Sanctions on Russian Metal Push Copper, Nickel and Aluminum Prices Higher

      April 17, 2024

    Categories

    • Business (1,027)
    • Investing (2,044)
    • Politics (2,977)
    • Uncategorized (20)
    • World (3,345)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: thriftybanker.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thriftybanker.com | All Rights Reserved