Mortgage Demand Drops as High Rates Discourage Refinancing
1 hr 45 min ago
Demand for mortgages slipped last week even as the mortgage rate declined slightly, data from the Mortgage Bankers Association showed.
The MBA’s Market Composite Index was lower by 0.2% for the holiday-shortened week ending July 5, as the 30-year, fixed-rate mortgage declined to 7.0%, moving lower by 0.3 percentage points.
The data showed home purchase applications were up by 1% from the prior week, driven by increases in government-backed Federal Housing Administration (FHA) and Veterans Administration (VA) loans.
Refinancing remained low, however, decreasing by 2% on the week.
“Although home equity gains have been significant in recent years, most borrowers do not have much of an incentive to refinance at current rates,” said Joel Kan, MBA’s deputy chief economist.
-Terry Lane
