- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to the highest level in a month.
- Still, applications to refinance a home loan rose 3% last week from the previous week, the Mortgage Bankers Association said.
- Mortgage applications to purchase a home increased by 1% from the previous week and were 14% lower than a year ago.
Mortgage rates rose last week, along with demand for refinances. That may sound counterintuitive, but it speaks to the larger picture of where mortgage rates are heading.
Applications to refinance a home loan rose 3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 9% lower than a year earlier.
Rates jumped after Federal Reserve officials indicated last week that rate hikes could come in 2023, a year earlier than expected. However, they didn’t mention when they would start scaling back their massive bond-buying program, which has kept mortgage rates near record lows.
Refinance demand had been falling sharply as rates rise but has improved in recent weeks. This may be because homeowners think rates are only going up, and it could be the last chance for the best deal. Rates set more than a dozen record lows last year, and refinance demand was huge. However, thousands of borrowers can still save now before rates move higher.
Mortgage applications to purchase a home increased 1% from the previous week and were 14% lower than a year ago. Buyers are hitting an affordability wall, as home prices keep rising quickly. A report on existing home sales in May showed the fourth straight month of declining home sales.
“Falling affordability is simply squeezing some first-time buyers out of the market.,” said Lawrence Yun, chief economist for the National Association of Realtors, which issued the report Tuesday.
There are some changes coming down the pipe that are going to impact pricing on certain refinances. So if refinances are in your plans right now, you may want to move quickly and brace yourself. if your delay There’s plenty of reasons FHFA has for doing this kind of stuff, but at the end of the day, is it really necessary? What do you think? Watch the video below:
I have a very simple and timely message for you today. As a friend and a Boston condo blogger, I want to let you know personally that this is likely the lowest we’ll see mortgage interest rates this year.
If you’re a first-time Boston condo buyer, now is the time to jump out of your rent payment and get into a Boston condo you can call home, with only a 3.5% down payment. If you are a Boston condo owner already, it’s a great time to refinance and probably this will be your last chance to lock into a low-interest rate for the next few years.
I’m not just telling you this for my sake, but for yours. I am giving you the same advice that I have already given my clients, I have been telling if you are planning to purchase a condo this year, this is the time for you to lock in that rate for a Boston condo you’ll want to live in at some time in the future, maybe in the next few years.
The advice I share with you today is the same advice I share with my family and clients. If locking in a mortgage rate or refinancing makes sense for you to do it right now, I’d love for you to give me a call or send me an email. I look forward to helping you achieve your goals for the Boston condo market.
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