Mortgage demand fell again last week

By BrokerOwner.net March 27, 2024 Housing News

Mortgage
demand
remained
subdued
for
the
second
consecutive
week
despite
slightly
lower
mortgage
rates.

Mortgage
applications
decreased
by
0.7%
on
a
seasonally
adjusted
basis
during
the
week
ending
March
22,
according
to
the

Mortgage
Bankers
Association’s
(MBA)
weekly
mortgage
applications
survey.

“Purchase
applications
were
essentially
unchanged,
as
homebuyers
continue
to
hold
out
for
lower
mortgage
rates
and
for
more
listings
to
hit
the
market,”
Joel
Kan,
MBA’s
vice
president
and
deputy
chief
economist,
said
in
a
statement.
“Lower
rates
should
help
to
free
up
additional
inventory
as
the
lock-in
effect
is
reduced,
but
we
expect
that
will
only
take
place
gradually,
as
we
forecast
that
rates
will
move
toward
6%
by
the
end
of
the
year.
Similarly,
with
rates
remaining
elevated,
there
is
very
little
incentive
right
now
for
rate/term
refinances.”

Both
purchase
and
refinance
activity
decreased
during
the
week.
Purchase
loan
application
volume
dropped
by
0.2%
from
one
week
earlier.
Meanwhile,

refinance
volume
fell
by
2%
from
the
prior
week.

As
of
Wednesday,
the
30-year
fixed
rate
on

HousingWire’s
Mortgage
Rates
Center
stood
at
7.16%.

The
MBA
survey
shows
that
the
average

mortgage
rate
for
30-year
fixed
loans
with
conforming
balances
($766,550
or
less)
decreased
to
6.93%,
down
from
6.97%
last
week.
Meanwhile,
rates
on

jumbo
loans
(balances
greater
than
$766,550)
remained
unchanged
week
over
week
at
7.14%.

The

Federal
Housing
Administration
(FHA)
share
of
total
applications
decreased
to
12%
last
week,
down
from
12.1%
the
week
before.
The

U.S.
Department
of
Veterans
Affairs
(VA)
share
fell
to
12%,
down
from
12.1%
the
week
before.
And
the

U.S.
Department
of
Agriculture
(USDA)
share
remained
unchanged
at
0.5%.