Is mortgage demand finally drying up?

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“Mortgage rates were volatile in the past week as investors tried to gauge the Fed’s upcoming action amid several controversies, including rising inflation, mixed labor market data, high consumer spending and limited housing supply that led to a rapid recovery. housing. – price increases, ”said Fratantoni. “Applications for the purchase of conventional loans fell last week to the lowest level since May last year. The average loan size for all purchase applications has increased, indicating that first-time homebuyers who typically receive smaller loans are likely to be pushed out of the market due to the lack of entry-level homes for sale. ”

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The share of adjustable rate mortgages (ARM) fell 3.6% of total applications, while the FHA remained unchanged at 9.5%. The share of VA in the total number of applications decreased by seven basis points to 10.5%, while the share of USDA in the total number of applications did not change a week earlier and amounted to 0.5%.

The average contractual interest rate for 30-year fixed rate mortgages and associated loan balances ($ 548,250 or less) increased to 3.20% from 3.18%, while the contractual interest rate for 30 -year mortgages with a fixed interest rate and large loan balances (over USD 548,250) decreased to 3.23% from 3.26%.

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