Demand for mortgage refinance of 21%, as rates of interest reached up for three weeks

A short roller coaster ride for mortgage interest caused another swing. After they had dropped to a low of three years ago, the prices opened again.

As a result, the total operating volume of the mortgage application decreased by 12.7% compared to the previous week last week, according to the seasonally adjusted index of the Mortgage Bankers Association. The drop was mainly driven by a withdrawal of the refinancing.

The refinancing of a housing loan fell by 21% for the week and was 16% higher than the same week ago a year ago. This, even though the mortgage lenses were 32 basis points higher than in the previous year. The refinance share of mortgage activity fell from 60% of the previous week to 55% of the total applications.

The average contract interest rate for 30-year fixed mortgages with compliant loan credit of $ 806,500 or less rose from 6.34%to 6.46%, whereby the points rose to 0.61 out of 0.57, including the originating fee for loans with a deposit of 20%.

“The mortgage interest rates have increased to the highest level for three weeks, since the yields of financing among the youngest, strongest than expected economic data were pressed. After the outbreak of refinancing activities last month, this reversal of the mortgage lens led to a considerable decline in the refinancing applications, which with our view that refinancing opportunities are short -lived in this year,” said Joel, “said Joel,” said Joel, ” MBAS VICE President and Deputy, Deputy, Deputy.

The refinancing activity was withdrawn for all types of loans, including a decline in conventional refinancing of 22% and a decline in VA refineries by 27%. The average loan size for refinancing went from $ 461,300 two weeks ago to $ 380,100. “

Applications for a mortgage to buy a home fell 1% for the week and was 16% higher than the same week ago a year ago. This is after three consecutive weeks of profits.

“The strength of the purchase market was also influenced by other factors such as wider economic conditions, the health of the labor market and the housing stock,” said Kan.

The housing stock in August fell for the first time since the beginning of this year after a report recently caused by the National Association of Realors. While the houses are now on the market for longer and keep the offer over a previous year, more sellers start to extinguish their real estate. Other potential sellers are waiting for a better market.

At the beginning of this week, the mortgage interests did not move at all. The expectation was that the interest on Friday, when the monthly employment report for the publication was determined, could move more decisively, but the state closure now has this in the balance.