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Kahn also noted that last week, when rates also fell, there may have been a “delayed spread” of applications, but there was little response to refinancing applications.
The share of refinancing mortgage activities increased from 61.6% to 64.1% of the total number of applications. The share of adjustable rate mortgages (ARM) increased to 3.5% of the total number of applications.
The average contractual interest rate for 30-year fixed rate mortgages and associated loan balances ($ 548,250 or less) decreased from 3.15% to 3.09%. The average contractual interest rate for 30-year fixed rate mortgages with large loan balances (over USD 548,250) decreased from 3.20% to 3.16%.
“The number of applications for purchases increased in the last week, but the average loan size has dropped to its lowest level since January 2021,” said Kahn. “We continue to see the ebb and flow as demand for housing remains strong, but stocks for sale remain low. However, lower rates may help some home buyers complete their purchases, especially first-time home buyers. The year-to-year comparisons have dropped significantly for both purchase bids and refinancing bids as they were compared to the week without a weekend in 2020. “