Average Mortgage Rates Move Higher

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates increased last week from one week earlier. Rates moved higher for 30-year fixed-rate mortgages with both conforming and jumbo balances and loans backed by the Federal Housing Administration. The increase, though slight, contributed to the third consecutive week of declining mortgage application demand. Purchase and refinance activity both fell from the week before. Joel Kan, MBA's associate vice president of economic and industry forecasting, says home buyers are feeling cautious. “Purchase activity declined for both conventional and government loans, as the weakening economic outlook, high inflation, and persistent affordability challenges are impacting buyer demand,” Kan said. “The decline in recent purchase applications aligns with slower home building activity due to reduced buyer traffic and ongoing building material shortages and higher costs.” The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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