Mortgage applications have seen a consecutive decline, dropping 1.2% in the week ending May 23, following a 5.1% decrease the previous week. The decrease is attributed to rising mortgage rates, influenced by Moody's credit downgrade of U.S. debt and a new budget reconciliation bill expected to inflate national debt. Notably, refinance activity fell by 7%, while purchase applications increased by 3%. Additionally, the average contract interest rate for 30-year fixed mortgages rose to 6.98%, the highest rate since January.
"Mortgage rates reached their highest level since January, following higher Treasury yields," says Joel Kan, MBA's vice president and deputy chief economist. "As a result of these higher rates, applications activity decreased, driven by a 7% decline in refinance applications."
Collection
[
|
...
]