US Mortgage Applications Rise, Mortgage Rates Fall – MBA



Homes can be seen in the Penn Estates development, where most homeowners are underwater on their mortgages, in East Stroudsburg, Pennsylvania, USA, June 20, 2018 REUTERS / Mike Segar

25-th of August. Reuters

The Mortgage Bankers Association (MBA) said Wednesday that its average contract interest rate for traditional 30-year mortgages fell to 3.03% from 3.06% in the week ending August 20. The Composite Market Index, which tracks seasonally adjusted mortgage applications, was up 1.6% from a year ago. a week earlier, which reflects an increase in applications for refinancing existing loans by 0.9%.

According to the MBA, the number of purchase applications increased by 3.0%.

After hitting a record low late last year below 2.9%, mortgage rates rose in the first half of this year and peaked in the spring. Rates have been declining since then, largely constrained by the Federal Reserve’s emergency stimulus measures aimed at recovering from the coronavirus pandemic, but they rose last week after data showed hiring surged last month.

“The purchasing index was at its highest level since early July, despite still lagging behind the pace of 2020,” said Joel Kahn, MBA’s deputy vice president of economic and industry forecasting. “There has also been some decline in average loan sizes, potentially a sign that more first-time buyers looking for low-cost homes are being helped by the recent rise in the number of homes for sale, both newly built and existing homes.”

Existing home sales rose for the second straight month in July, a report from the National Association of Realtors said Monday. More details

New home sales also rose in July after three consecutive monthly falls, the Commerce Department said Tuesday. However, the dynamics in the housing market appears to be slowing as house prices have continued to rise this year amid limited supply. More details

“Strong demand, still low mortgage rates and a modest increase in the inventory of existing homes are driving home sales,” said Nancy Vanden Houten, lead economist at Oxford Economics in New York. “However, supply is still historically limited and home prices at or near record levels will continue to stifle home sales.”

Evan Sully reporting; Edited by Andrea Ricci

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