Weekly Mortgage Update: Rates Drop, but Consumer Response Muted

Anya’s Market Bites:

Despite a recent drop in mortgage rates, consumers showed little enthusiasm. According to the Mortgage Bankers Association, total mortgage application volume rose only 0.9% from the previous week.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.94%, the lowest since March. However, refinance demand fell by 0.4% for the week, although it was 30% higher than a year ago.

Mortgage applications for home purchases increased by 2% but remain 12% lower than the same week last year. The housing market continues to slow due to volatile interest rates, limited inventory, and high prices.

MBA’s Chief Economist Mike Fratantoni forecasts a rise in home sales for the rest of the year as more inventory becomes available. While mortgage rates fluctuated early this week, they pulled back slightly after weaker-than-expected retail sales data, indicating a less optimistic outlook for the American consumer.

Stay tuned for more updates as we monitor these market changes and what they mean for your home buying journey.

(Source: California Association of Realtors)

All the best,

Anya Derebenskiy

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