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Refinance demand is now half what it was a year ago, as mortgage rates rise again
CNBC • • general
Key Points:
- Mortgage rates reached a nearly three-year high last week, with the average 30-year fixed-rate mortgage rising to 7.49%, contributing to a 4.2% decline in total mortgage application volume.
- Refinance applications dropped 8% weekly and were 56% lower than the previous year, as higher rates reduce the pool of eligible homeowners seeking to refinance.
- Purchase mortgage applications fell 2% for the week and were 15% lower year-over-year, with FHA purchase applications declining 6% amid ongoing affordability challenges.
- Adjustable-rate mortgage (ARM) applications remain steady at 10.3%, significantly higher than the sub-3% share during the early pandemic, as borrowers seek lower initial payments despite higher risk.
- Mortgage rates slightly eased this week to around 7.56%, near the lowest level in over a week, prompting some analysts to cautiously consider a potential slowdown in upward momentum.
