Rates for conforming loans pushed through 7 percent last week and continue to rise, as latest inflation data dims prospects that Fed will ease in June.
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Applications for purchase mortgages picked up last week as some would-be homebuyers were able to lock in rates before they surged to new 2024 highs, according to the weekly survey of lenders by the Mortgage Bankers Association.
The MBA’s Weekly Mortgage Applications Survey showed demand for purchase mortgages picked up by a seasonally adjusted 5 percent last week compared to the week before, but were down 10 percent from a year ago.
Applications to refinance were essentially flat, rising 0.5 percent week over week, but were up 11 percent from a year ago.
Joel Kan
“Rates increased for the second consecutive week, driven by incoming data indicating that the economy remains strong and inflation is proving tougher to bring down,” MBA Deputy Chief Economist Joel Kan said in a statement.
Kan said it’s possible that applications picked up because some borrowers decided to act in case rates continue to rise.
Separately, the MBA’s Builder Application Survey showed mortgage applications for new home purchases were up 6.2 percent in March when compared to a year ago, but hardly budged from February.
“March is typically a month when new home purchases see a seasonal boost, but this year March applications for new home purchases saw less than a 1 percent increase over the prior month on an unadjusted basis,” Kan said.
Would-be new homebuyers “remain adversely impacted by strong home-price growth and mortgage rates hovering around 7 percent,” Kan said.
Mortgage rates hit new 2024 highs
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