Mortgage refis dwindle along with incentives

Why the red hot housing market remains a safe investment

Trex Company CEO Bryan Fairbanks explains what’s driving the home builders on ‘The Claman Countdown.’

Demand for mortgages took a big hit in the past week as the rate on the 30-year fixed mortgage rose for the fifth consecutive week.

The rate increased to 3.72% from 3.64%, the highest rate since March 2020.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

That sent demand for mortgage applications down 7.1% from a week ago, according to the Mortgage Banker's Association's weekly survey.

The Refinancing Index dropped 13% from the previous week.

"The 30-year fixed rate is now 77 basis points higher than it was a year ago," said Joel Kan, MBA’s associate vice president of economic and industry forecasting. "Unsurprisingly, borrower demand for refinances subsided, with applications falling for the fourth straight week."

NYC REAL ESTATE EXPERT ON RECORD MARKET: OPPORTUNITIES FOR 'GOOD DEALS' STILL EXIST

While overall mortgage demand and refinancing suffered, the purchase index bucked the trend and increased by 5% from the prior week.

"The decline in purchase activity was led by a 5 percent drop in government applications, compared to a modest less than one percent decline in conventional applications,"added Kan. "The relative weakness in government purchase activity continues to contribute to higher loan sizes. The average purchase loan size was $433,500, eclipsing the previous record of $418,500 set two weeks ago."

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