Mortgage applications fall again, interest rates rise to 7%

An interest rate index released by the Mortgage News Daily showed interest rates for 30-year fixed mortgages averaging 7.14% on Tuesday.

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Demand for mortgages weakened again last week as mortgage rates resumed their rise toward 7%, according to a weekly survey of lenders by the Mortgage Bankers Association.

Demand for seasonally adjusted loans last week was down 2% from the previous week and down 39% from a year ago, according to the MBA’s weekly mortgage application survey. Refinancing requests were down 2% from the previous week and 86% from a year ago.

Mike Fratantoni

“Mortgage rates rose again in the first week of the fourth quarter of 2022, with the 30-year conforming rate reaching 6.81%, the highest level since 2006,” MBA chief economist Mike Fratantoni said in a statement. ‘ said. “Both refinancing and homebuying applications are down, further below last year’s record levels. “It’s good for the housing market because it’s supporting it, but it also thwarts any short-term reversal of the Fed’s plan to raise more rates.”

Five-year adjustable rate residential mortgage (ARM) loan rates rose by 20 basis points, but ARM loan applications accounted for 11.7% of applications, down slightly from 11.8% the week before.

FHA loans accounted for 13.5% of applications, up from 13.2% the week before, and the share of VA applications also increased to 10.9% from 10.7% the week before.

Mortgage rates resume rising

After easing slightly at the end of September, mortgage rates are back on track as bond market investors expect the Federal Reserve to raise rates by 75 basis points for the fourth time this year on Nov. 2. rising.

The market also Investment in UK Government Bonds It is backed by plans to boost economic growth by implementing debt tax cuts.

Interest rates for 30-year fixed-rate conforming mortgages continue to climb, hitting a 2022 high of 6.805% on Friday, according to the Optimal Blue Mortgage Market Indices.rate index published by mortgage news daily It shows 30-year fixed mortgage rates averaging 7.14% on Tuesday.

In the week ending October 7, MBAs reported average interest rates for the following types of loans:

  • 30-year fixed interest rate conforming mortgage (loans outstanding of $647,200 or less), interest rates averaged 6.81%, up from 6.75% the week before. The effective interest rate also rose as the point for loans with a loan value ratio (LTV) of 80% increased from 0.95 (including origination fees) to 0.97.
  • 30 year fixed interest rate jumbo mortgage (loans outstanding over $647,200) averaged 6.25%, up from 6.14% the week before. Although the LTV 80% loan point dropped from 0.79 (including origination fee) to 0.61, the effective interest rate rose.
  • 30-year fixed interest rate FHA Mortgage, the rate averaged 6.61 percent, up from 6.60 percent the week before. As the average points for 80% LTV loans he increased from 1.51 to 1.71 (including origination fees), so did the effective interest rate.
  • the price of 15 year fixed rate mortgage It averaged 6.12%, up from 5.96% the week before. The effective interest rate also rose as the LTV 80% loan points increased from his 1.08 (including origination fee) to 1.30.
  • for 5/1 Arms, the rate averaged 5.56 percent, up from 5.36 percent the week before. The LTV 80% loan points decreased from 1.02 (including origination fee) to 0.9, but the effective interest rate increased.

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