Sub-3% rate a non-factor on mortgage apps


Mortgage applications are down slightly this week, down 2.5% from the previous week, as determined by the Mortgage Bankers Association (MBA) weekly mortgage application survey.

The share of mortgage applications also fell slightly, with a decrease of 1% from the previous week to 60.6% of the total number of applications, and 18% lower than a year ago.

Mortgage applications have fallen last week, even if mortgage rates have fallen for the third week in a row. The 30-year fixed rate fell three basis points to 3.17%, which is still 32 basis points higher than the low reported in December 2020, ” said Joel Kan, MBA’s Associate VP of Economic and Industry Forecasting. “Even with lower rates for a few weeks, most borrowers have probably already refinanced. Therefore, activity has declined in seven of the past eight weeks. The recent decline in the owner-occupied market comes despite an improving economy and labor market. The activity is still above the level of a year ago, however accelerating house price growth and Low stock has resulted in a decrease in the number of purchase requests in four of the past five weeks. “

Despite mortgage interest fell below the 3% mark last week, the seasonally adjusted purchasing index fell 5% from a week earlier. The unadjusted Purchasing Index was down 4% from the previous week and up 34% from the same week a year ago.

By type, the FHA share of the total applications has fallen to 10.7%, compared to 11.3% the week before. The VA share in the total number of applications rose this week, from 11.5% the week before to 12.2%. The USDA share of the total number of applications remained unchanged at 0.4% the week before.

Zillow recently reported that while there is a sustained demand for housing, causing stock ‘for sale’ to drop 1.1% in March, the monthly decline was the smallest since July 2020, thanks to an influx of new stock (up 30% from the end of February). until the end of March).

However, more homes on the market doesn’t mean they’re ready for affordability like Redfin found median home sale prices rose 18% year-on-year to $ 344,625, a record high in March 2021, with asking prices reaching a maximum of $ 356,175.

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