The number of mortgage applications fell to a minimum in a year

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Mortgage Bids fell last week to a number that hasn’t been seen in over a year, with both purchases and refinancing hitting.

The Mortgage Bankers’ Association, which tracks the data, attributed the decline to a combination of factors, including rising inflation and lower prices for buyers. market

“Mortgage applications fell to their lowest level in nearly a year and a half, with both refinancing and purchase applications declining,” MBA senior vice president and chief economist Mike Fratantoni said in a statement. “Mortgage rates have been volatile in the past week as investors tried to assess the upcoming steps to The federal reserve amid several diverging signals, including rising inflation, mixed Work market data, high consumer spending and limited supply in the housing market, which led to rapid housing growth. “

“Applications for regular loans declined last week to the lowest level since May last year,” continued Fratantoni, adding: “The average loan size for all applications for purchase has increased, indicating that first-time home buyers who usually receive smaller loans are likely to get squeezed out of the market due to the lack of entry-level homes for sale. “

An MBA study covering over 75% of all mortgage applications in the United States showed that there was a 6.9% decline in the week ending June 25 from the week before. While the share of applications for FHA and USDA remained unchanged at 9.5% and 0.5%, respectively, the share of applications for VA loans fell to 10.5% from 11.2% in the previous week.

Average interest rates on qualifying loans of $ 548,250 or less increased from 3.18% to 3.20%, while giant rates above that dollar amount dropped from 3.26% to 3.23%. These numbers came just days after Freddie Mac reported that average mortgage rates had dropped. rose above 3% for the first time in two months.

Meanwhile, home prices have skyrocketed. the highest level ever in April with an increase of 14.6% from a year ago, according to the National Case-Shiller Index, which tracked data for 30 years.

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