Uptick in Mortgage Rates Undercuts Demand
2 hr 32 min ago
Demand for home loans declined to its lowest levels since March, stepping back amid the first increase in mortgage rates in four weeks, data from the Mortgage Bankers Association showed.
Applications for mortgage loans were 5.7% lower to end the week of May 24, likely depressed by an increase in the 30-year, fixed-rate mortgage to 7.05%.
“Borrowers remain sensitive to small increases in rates, impacting the refinance market and keeping purchase applications below last year’s levels,” said MBA Vice President Joel Kan.
Home purchases declined 1% and mortgage loan refinancing dropped 14% when compared with the prior week.
Kan noted low inventory continued to drag down the housing market.
“There continues to be limited levels of existing homes for sale and many buyers are struggling to find listings in their price range that meet their needs,” Kan said.
-Terry Lane
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