Mortgage applications fell earlier this month as interest rates rose following September's strong employment report.
Recent data from the Mortgage Bankers Association's (MBA) Weekly Application Survey shows the number of applications for mortgage loans. decreased by 5.1% In the first week of October.
Mike Fratantoni, Senior Vice President and Chief Economist, said, “Following strong economic indicators last week, including the September employment report, mortgage rates rose, with the 30-year fixed rate rising to 6.36%, the highest rate since August. “It reached a high level.” He earned an MBA, he said in a statement Wednesday.
“Refinances of conventional loans, which tend to have larger balances than government loans and are more sensitive to certain changes in mortgage rates, fell significantly this week.Purchase applications were little changed over the week and were down from last year. It was 8% above the level.”
At the same time, the MBA Refinance Index, which measures mortgage refinance activity, fell 9% over the same period and was “159% higher than the same week a year ago,” the association said.
The latest data also showed that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 or less increased to 6.36%. Interest rates on 30-year fixed-rate mortgages with MBAs, known as “jumbo loan balances,” or $766,550 or more, rose from 6.50% to 6.64%.
“As we have previously highlighted, home buying decisions are influenced by many factors, not just the level of mortgage rates. Over the past year, the biggest constraint for many prospective home buyers has been a lack of inventory. ,” Fratantoni said.
“With more homes now available in many markets across the country and mortgage rates remaining low compared to recent history, at least some potential homebuyers are moving on. ”
The data was released just days after mortgage rates rose to 6.12% on 30-year mortgages for the first time in nearly two months.
