The mortgage market showed a positive trend with a 1% increase in the overall index and a 2% rise in the seasonally adjusted purchase index compared to last week. The purchase applications surged 2.3% week-over-week and were up 18% year-over-year, fueled by growth in government purchases. Meanwhile, refinance activity saw little change, though conventional refinances dipped. The FOMC meeting stabilization of mortgage rates contributed to these trends, with notable shifts in both FHA and VA application shares, signaling diverse financing options available to buyers.
Despite economic uncertainty, the increase in home inventory means there are additional properties to buy, supporting more transactionsâunlike the past two years.
There was a notable gain in government purchase applications, up almost 5% for the week and 40% on an annual basis, indicating strong demand.
The average contract interest rate for 30-year fixed-rate mortgages increased slightly to 6.86%, while jumbo loan balances saw a minor decrease to 6.85%.
The refinance share of mortgage activity decreased to 36.4% of total applications, indicating a shift towards purchase activity amidst steady rates.
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