Mortgage rates held steady last week, leaving room for homebuyers and those looking to refinance to get in while the getting is relatively good.
Purchase and refinance applications both reached five-week highs last week after mortgage rates held steady from the previous week, according to a report from the Mortgage Bankers Association.
The seasonally adjusted purchase index increased 3 percent from the previous week as buyers tried taking advantage of the mortgage rate easing. Purchase applications were down modestly on an unadjusted basis from the previous week, but up 12 percent year-over-year.
The trends were more positive for refinancing activity, which increased by 2 percent from the previous week and 7 percent from the previous year. The refinancing share of mortgage activity jumped to 31.9 percent as those disincentivized by the loss of the early pandemic’s low mortgage rates recognized a refinancing opportunity more favorable compared to a few weeks ago.
The weeks mortgage rates have spent at 7.61 percent have marked a relative reprieve for buyers and refinancers after rates hovered around 8 percent earlier this fall.