Mortgage rates fell for the second week in a row, but it was not enough to boost demand for new loans for purchases or refinances, according to a weekly report from the Mortgage Bankers Association.
The rates are still much higher than in the last two years. Last week, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) decreased to 5.46% from 5.49%, with points falling to 0.60 from 0.74 (including origination fee). ) for loans with a 20% deposit.
Applications to refinance a home loan fell 2% for the week and were 75% lower than the same week a year ago.
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A for sale sign is placed in front of a home listed for more than $1 million on April 29, 2022 in San Francisco, California.
justin sullivan | fake images
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“As a result, most refinancing borrowers remain on the sidelines, and refinancing applications have decreased in nine of the last 10 weeks. Compared to January 2022, refinancing activity is down 66%,” said Joel Kan, MBA associate vice president of economics. and industry forecast.
Home buyers are also pulling out. Mortgage applications to buy a home were flat week-on-week and down 16% from a year ago.
More supply is coming to the market, but homes are suddenly on the market longer.
Homebuyer demand for mortgages is now near the lows last seen in the spring of 2020, at the start of the Covid pandemic. Home buying rebounded quickly after that, with frenetic demand driving prices up at an astonishing rate over the past two years.
Now those high prices are shutting out potential buyers, especially people looking to buy their first home.
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