Homebuyers are taking advantage of lower mortgage rates and an increase in the supply of homes for sale, leading to a boost in mortgage demand. The Mortgage Bankers Association reported a 2.8% increase in mortgage application volume compared to the previous week, with the average interest rate for 30-year fixed-rate mortgages dropping to 6.69%. Applications for purchasing a home rose by 6%, the highest level since January.
However, applications for refinancing declined by 1% and were lower compared to the previous year, as most borrowers already have loans with lower rates. Despite the decrease in refinance applications, FHA and VA refinances rebounded from the previous week. Mortgage rates saw a slight decrease at the start of the week, with investors monitoring geopolitical developments and upcoming economic data releases.
Federal Reserve Chairman Jerome Powell is scheduled to participate in a discussion at The New York Times DealBook Summit, which may provide further insight into the state of the economy. With the increase in purchase activity fueled by lower rates and higher inventory levels, potential homebuyers are finding more options compared to earlier in the year. Overall, the housing market is experiencing positive momentum as buyers take advantage of favorable market conditions.
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