Mortgage Demand Drops as High Rates Discourage Refinancing

Wholesale Inventories Rise to Meet Expectations

1 hr 48 min ago

Total wholesaler inventories came in as expected in May, moving higher by 0.6% from the prior month to reach $901.7 billion, Census Bureau data showed. The results aligned with projections from economists surveyed by the Wall Street Journal and Dow Jones Newswire.

The Census Bureau also revised April wholesale inventories higher. 

The most stark change in inventory levels came in nondurable goods, with stocks of farm products jumping by 5.2% and drug inventories increasing by 3.1%. Petroleum stocks were lower by 6.4%. For durable goods, automotive inventories were higher by 1.4% and machinery stocks were up 1%.

-Terry Lane

Mortgage Demand Drops as High Rates Discourage Refinancing

3 hr 34 min ago

Demand for mortgages slipped last week even as the mortgage rate declined slightly, data from the Mortgage Bankers Association showed.

The MBA’s Market Composite Index was lower by 0.2% for the holiday-shortened week ending July 5, as the 30-year, fixed-rate mortgage declined to 7.0%, moving lower by 0.3 percentage points.

The data showed home purchase applications were up by 1% from the prior week, driven by increases in government-backed Federal Housing Administration (FHA) and Veterans Administration (VA) loans.

Refinancing remained low, however, decreasing by 2% on the week. 

“Although home equity gains have been significant in recent years, most borrowers do not have much of an incentive to refinance at current rates,” said Joel Kan, MBA’s deputy chief economist. 

-Terry Lane

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