Climbing mortgage rates and stock market volatility are being blamed for recent decreases in mortgage application volume. The Mortgage Bankers Association reported that its Market Composite Index fell 4.1 percent overall with purchases dropping six percent while applications to refinance declined by two percent. These latest figures are for the week ended February 9.
This is the third consecutive week in which purchase applications has stalled, dragging overall activity downward. Although volume is still four percent higher than it was a year ago, potential buyers are facing higher mortgage rates and uncertainty in the stock market which are likely to continue to drive demand down.
It remains to be seen how the approaching springtime will affect demand. Warmer months are generally regarded as the 'homebuying season'.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent while 15-year rates are near 3.875 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.