Mortgage & housing market update
Higher Rates Weigh on Mortgage Applications and Refinancing
Mortgage application activity declined during the holiday-adjusted week ending September 11 as higher rates reduced both purchase and refinance demand.
The Mortgage Bankers Association reported a 4.1% seasonally adjusted decline in total application volume. Purchase applications fell 1% from the previous week and were 19% below the same week one year earlier, while the refinance index declined 9%.
The survey's average contract rate for a conforming 30-year fixed mortgage increased to 6.97%, including points, while the reported 5/1 adjustable-rate average rose more sharply. The ARM share changed little, illustrating that an adjustable loan is not automatically the lower-cost choice in every market.
National survey averages are not personalized mortgage quotes. Buyers and homeowners should compare the same loan amount, term, points, credits, fees and lock period, then consider the expected time in the home or loan before deciding whether to buy down, choose an ARM or refinance.
Mortgage-rate information is provided for education only and is not a rate quote, offer, or commitment to lend. Actual rates, fees and terms vary by borrower, property, loan program, market conditions and lock period. Home-price indexes are not appraisals or forecasts for a specific property.
Source reporting: Housing Brief Housing News. This market update is an original summary and commentary prepared by the Carson Home Team.