Mortgage Demand Falls in the 3rd Week of January
Mortgage demand decreased from one week earlier, according to data from the Weekly Mortgage Applications Survey (Mortgage Bankers Association)
THE MAIN IDEX decreased 4.1% on a seasonally adjusted basis from one week earlier.
- REFI: The Refinance Index decreased 5%, but was up 83% from the same week one year ago.
- PURCHASE: The Purchase Index actually increased 3% and was up 16% from the same week one year ago.
MORTGAGE RATES are continuing to move upwards with the average contract interest rate for a 30-YR fixed-rate mortgage moving up 3 bips to 2.95%
HOUSING PRICES aren’t being deterred by rising rates. The average purchase loan amount hit another record high of $395,200.
ALL ABOUT DEMAND: Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said in a statement, “Since hitting a recent low in April 2020, the average purchase loan amount has steadily risen – in line with the accelerating home-price appreciation occurring in most of the country because of strong demand and extremely low inventory levels.”