Hello, Darren Lum here with the Darren Lum Loan Report. Let’s break down the recent changes in the mortgage market:
For the first time in nine weeks, mortgage rates have seen a slight uptick, marking a pause in their steady downward trend. This shift, combined with the current high home prices and low inventory, is influencing potential buyers and the overall mortgage market.
- Slight Increase in 30-Year Fixed Mortgage Rates: The average rate for a 30-year fixed mortgage rose marginally to 6.62%, a slight increase from the previous 6.61%. However, the 15-year fixed mortgage rate decreased to 5.89%, indicating a mixed trend in the market.
- Reduced Mortgage Applications: The Mortgage Bankers Association reported a 9.4% drop in mortgage applications, with a significant 5% decrease in home purchase applications. This downturn is attributed to potential buyers waiting for further rate reductions.
- Refinancing Demand Decline: There’s an 18% decrease in refinancing demand, contrasting with a 15% increase compared to last year. Many are holding off on buying or selling, anticipating lower rates in the future.
- Buyer Expectations on Rate Drops: A Realtor.com survey revealed that 12% of potential buyers are waiting for rates to fall below 6%, while 28% are looking for a drop below 4% before committing to home purchases.
Conclusion
As we witness these fluctuations in mortgage rates, it’s essential to stay informed and understand their implications on buying and selling decisions. Keep up with the latest in the mortgage landscape at the Darren Lum Loan Report.
References:
- Fox Business: Mortgage Rates.
