Number: Mortgage rates remain above 7% and refinancing demand is slowing, marking the seventh straight week of lower overall mortgage demand.
Mortgage applications were down 0.1% this week as interest rates remained above 7%.
Some buyers are still buying homes, but demand for refinancing continues to decline, pulling down overall numbers. Currently, refinancing is at his lowest level since 2000.
The Mortgage Bankers Association (MBA) said Wednesday that high interest rates weighed on the Market Composite Index, a measure of mortgage application volume.
The market index fell 0.1% to 199.9 in the week ending November 4th. A year ago the index was 658.1.
Key details: The refinancing index fell 3.5%, down 87% from a year ago.
The Purchasing Index, which measures mortgage applications for home purchases, rose 1.3% from the previous week.
Purchase offers reversed a six-week losing streak but remain at their lowest level in seven years.
Refinancing has fallen to its lowest level since August 2000, according to MBA.
The variable rate mortgage share of activity rose, forming 12% of applications.
The average acceptance rate for 30-year mortgages for homes sold under $647,200 was 7.14% for the week ending 4 November.
That’s up from 7.06% the week before, according to MBA. They added that this was the third week in a row that 30-year maturities were above 7%.
The 30-year average rate for homes sold for $647,200 and above was 6.5%.
2015 rose to 6.4%.price variable rate mortgage increased to 5.87%.
Big picture: Mortgage rates are high, but data suggests some home shoppers are accepting 7% as the new normal.
To be clear, high interest rates continue to hit the housing market. Interest rates have doubled from what he did last year, adding hundreds of dollars to monthly interest payments to homebuyers.
Also, housing budgets are shrinking.And with home prices still rising, prospective buyers will continue to I struggled to find good listingsFannie Mae on Monday said homebuyers’ sentiment was Lowest level since 2011.
But this time the lack of a fierce bidding war, or concession It is made by some sellers, so it can be attractive to buy.
Meanwhile, refinancing has been declining over the long term as homeowners see no value in rates above 7%.
market reaction: yield of 10-year government bond TMUBMUSD10Y,
It surpassed 4.1% in early morning trading.