Mortgage applications increased last week as the 30-year rate stays below its October highs.
They rose 10.4% in the week ending Jan. 12 from the prior week, according to data from the Mortgage Bankers Association.
“Mortgage rates declined across all loan types as Treasury yields moved lower last week on incoming inflation data, which helped to support a rise in mortgage applications,” MBA’s Deputy Chief Economist Joel Kan wrote on Wednesday.
According to Freddie Mac, the average 30-year fixed mortgage rate as of last week was 6.66%. While this was an increase from the previous week’s 6.62%, it’s a big difference from the 7.79% high reading from October.
“If rates continue to ease, MBA is cautiously optimistic that home purchases will pick up in the coming months,” Kan said.
Refinance activity also picked up last week. According to the MBA, the Refinance Index increased 11% from the previous week and was 10% higher than the same week one year ago.
Despite mortgage rates staying below their peak, they are still historically high. This has led to an increase in adjustable-rate mortgage applications, or applications for home loans with an interest rate that adjusts based on the market. The adjustable-rate mortgage share of activity increased to 5.9% of total applications
Home builder stocks were slightly lower in the premarket session Wednesday.
D.R. Horton
was down 0.6%,
KB Home
was dropping 0.5%, and
Toll Brothers
was 0.8% lower.
Write to Angela Palumbo at [email protected]
Read the full article here