Mortgage Demand Falls As Rates Bounce Around

Total demand for mortgages fell for the week ending July 16th, according to the MBA’s latest weekly survey… (Mortgage Bankers Association)

  • REFI: Demand for refinance applications fell 3% from last week and was 18% lower than the same time a year ago.
  • PURCHASE: Demand for purchase applications fell 6% last week and was 18% lower than the same time a year ago.

Rates were mixed for the week. The 30-YR saw a slight increase while the 15-YR fell to the lowest level since January…

  • 30-YR FIXED: The average rate increased by 2 basis points to 3.11%.
  • 15-YR FIXED: The average rate actually decreased 2 basis points to 2.46%.

Joel Kan, an MBA economist, said in a statement, “The 10-year Treasury yield dropped sharply last week, in part due to investors becoming more concerned about the spread of Covid variants and their impact on global economic growth,” said Joel Kan, an MBA economist.”

NOTE: Diane Olick at CNBC argued that “Refinances could get a boost going forward, after mortgage giants Fannie Mae and Freddie Mac last Friday announced they were removing an adverse market fee charged to lenders for all refinances” (CNBC)

Written by Tyler Cralle