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Last Week’s Mortgage Market Movements
Joel Kan, MBA’s vice president and deputy chief economist, remarked that mortgage rates were somewhat mixed last week. Interestingly, the 30-year fixed rate decreased slightly to 6.42 percent. Despite this slight dip, mortgage applications saw a reduction compared to the previous week. Conventional and VA applications notably declined.
FHA Applications Climb
Conversely, FHA applications, particularly FHA refinances, experienced a notable increase. They rose by 12%, as FHA rates were over 10 basis points below conventional fixed rates.
Refinancing activity made up 53.6% of total applications, marking a subtle rise. However, the share of Adjustable-Rate Mortgages (ARMs) slipped to 9.3%.
| Type | Percentage Share |
|---|---|
| FHA | 20.5% |
| VA | 14.9% |
| USDA | 0.4% |
Interestingly, FHA applications accounted for a greater share of the total, reaching 20.5%. In contrast, VA applications fell to 14.9%. Meanwhile, the USDA share remained steady at 0.4%.
Current Market Activity
Despite the overarching trend of higher rates tempering mortgage demand, the market maintains more vigour than a year ago. Homebuyers continue to be particularly active.
Further Insights
For additional insights on mortgage trends, you might find the Bank of England’s monetary policy perspective enlightening.
In summary, while conventional and VA applications declined, FHA applications thrived. The market remains unexpectedly robust, especially for keen homebuyers.
