Recent data reveals a mixed picture in mortgage application trends, with purchase applications showing moderate growth against a backdrop of comparatively steady mortgage rates near 7%. While the unadjusted purchase index surged 7% week-over-week, indicating increased buying activity, the refinance share of mortgage applications is contracting. Experts suggest that the Federal Reserve's current stance on economic policy will likely keep long-term rates stable, affecting both refinance and purchase decisions. Mixed signals across different mortgage categories show shifts in preference towards adjustable-rate mortgages.
The seasonally adjusted purchase index increased 1% from one week earlier whereas the unadjusted purchase Index increased 7% during the same period.
Mortgage rates remained near 7%, a key psychological level, which likely continues to slow the pace of activity for both refinances and purchases.
The refinance share of mortgage activity decreased to 40.4% of total applications from 42.7% the previous week.
Incoming economic data are likely to keep the Federal Reserve on hold for now, while uncertainties about economic policy are likely to keep longer-term rates steady.
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