Mortgage rates dip for the first time in a month boosting applications
Refinancing saw the biggest uptick in demand with an increase of 9% from the prior week
'Million Dollar Listing Los Angeles' star and luxury real estate agent Josh Flagg weighs in on the life cycle of the booming housing market.
Demand for mortgage applications rose last week as rates for mortgages slipped.
Applications for mortgages rose 2% compared to the prior week, according to the weekly survey from the Mortgage Banker's Association.
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Refinancing saw the biggest uptick in demand with an increase of 9% from the prior week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.30% from 3.31%.
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"Mortgage rates declined for the first time in a month, prompting a pickup in refinancing, with government refinances increasing more than 20 percent over the week," said Joel Kan, MBA’s associate vice president of economic and industry forecasting. "While the 30-year fixed mortgage rate and 15- year fixed mortgage rate both declined only one basis point, the FHA rate fell 7 basis points, driving the surge in government refinances."
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The 30-year fixed-rate mortgage backed by the FHA decreased to 3.35% from 3.42%.
The seasonally adjusted purchase index decreased 5% from one week earlier.
"The purchase market was slower last week, with applications falling after four consecutive increases," added Kan. "Activity is still close to the highest level since March 2021, which is a positive sign as the year comes to an end."
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The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.