Mortgage refinancing dries up
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Despite a decline in mortgage rates in the past week, one area of the mortgage market isn't seeing relief — the refinance market.
The Refinance Index decreased 2% from the previous week, according to the weekly survey from the Mortgage Banker's Association.
The refinance share of mortgage activity decreased to 27.6% of total applications from 28.1% the previous week.
"Refinance activity remained depressed, down 88% over the year," said Joel Kan, MBA’s vice president and deputy chief economist. "There is very little refinance incentive with rates so much higher than last year."
HOUSING AGENCY REPORTS RECORD FINANCIAL CUSHION AS IT BRACES FOR MARKET DOWNTURN
A home sits for sale in Geneva, Illinois, June 23, 2009. (REUTERS/Jeff Haynes / Reuters Photos) Mortgage rates declined as Treasury yields moved lower following signs of inflation easing. The average contract interest rate for 30-year fixed mortgages decreased to 6.90% from 7.14%. With the reduction, there were some bright spots in the latest data. A classic Tudor style house in the mid-west of United States for sale with sale sign on lawn. The two stories property with an old world facade, featuring a fire place chimney. (iStock / iStock) HOME PRICE GROWTH SLOWS IN AUGUST AT THE FASTEST PACE ON RECORD: CASE-SHILLER Overall demand for mortgage applications increased 2.7% from the prior week. A home for sale in Florida. (Stephen M. Dowell/Orlando Sentinel/Tribune News Service via Getty Images / Getty Images) "Application activity, adjusted to account for the Veterans Day holiday, increased in response to the drop in rates – driven by a 4% rise in home purchase applications," said Kan. "Purchase applications increased for all loan types, and the average purchase loan dipped to its smallest amount since January 2021". CLICK HERE TO READ MORE ON FOX BUSINESS The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Source: Read Full Article
