Total mortgage application volume surged nearly 16% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 7.02% last week from 7.07%.
Applications to refinance a home loan jumped 28% last week, compared with the previous week.

A new home is marked sold at a subdivision called Pintail Commons by Landsea Homes in Johnstown, Colorado on June 10, 2024.

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Mortgage rates dropped for much of last week, causing total mortgage application volume to surge nearly 16% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

But rates jumped back up again after a stronger-than-expected monthly employment report Friday.

For the week, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 7.02% from 7.07%, with points unchanged at 0.65 (including the origination fee) for loans with a 20% down payment. For the bulk of the week, rates were lower than that, but Friday’s news caused rates to jump 12 basis points, according to a separate survey from Mortgage News Daily.

Applications to refinance a home loan, which are most sensitive to daily moves in interest rates, climbed 28% last week compared with the previous week and were also 28% higher than the same week one year ago.

“Lower rates earlier in the week meant a strong increase in refinance activity, particularly for VA borrowers, who jumped on the chance to lower their rates,” said Mike Fratantoni, senior vice president and chief economist at the MBA.

Applications for a mortgage to purchase a home rose 9% for the week, but were still 12% lower than the same week one year ago. Homebuyers are not only contending with high interest rates but also high home prices. Inventory has also been lean. A monthly survey from Fannie Mae found 86% of consumers say now is a bad time to buy a home.

“Multiple data sources are now indicating that home inventory levels, while still historically low, are up significantly from last year at this time. This is good news for many prospective homebuyers who have been frustrated by the lack of homes on the market,” Fratantoni said.

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The Boston real estate buying season is nearly here and the demand for mortgages is accelerating.

Real Estate Mortgages for New Applications are on the Rise

The new year is bringing fresh momentum to the mortgage market as homebuyers seize on lower rates.

Purchase-loan applications rose 9 percent on a seasonally adjusted basis from the previous week for the period ending on Jan. 12, according to the Mortgage Bankers Association’s weekly survey. The group’s refinancing index also rose from the previous week, jumping 11 percent.

Both measures were supported by another drop in mortgage rates, which have fallen for three straight weeks. The contract rate on the average 30-year fixed-rate mortgage with conforming loan balances ($726,200 or less) fell by six basis points to 6.75 percent and is down by more than 100 basis points from its peak in the fall.

Boston condo refinancing is also up

The refinancing index last week was up 10 percent from a year earlier, but the purchase index was 20 percent lower as home sales and listings remain low.

The association is “cautiously optimistic that home purchases will pick up in the coming months,” MBA deputy chief economist Joel Kan said in a statement, adding the week-to-week activity increase was “heavily driven by the conventional market.”

The refinancing share of total activity fell from 38.3 percent the prior week to 37.5 percent last week. The FHA share of applications dropped from 14.4 percent to 14.3 percent, while the VA share saw an even greater downturn, falling from 16.3 percent to 14.2 percent.

Boston condo for sale jumbo loans

Boston condos for sale – My thoughts

I expect Boston condo for sale rates to be lower in the next few months, and two years from now even lower.

Where is Ford Realty Located?

Ford Realty is located in 137 Charles Street in Beacon Hill

Byline – John Ford – Boston Seaport Condo Broker.

Boston Seaport Condos for Sale 500k and above

Boston Seaport Condos for Sale 500k and above for Boston Seaport Condos for Sale in 2024.

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Real Estate Mortgages for New Applications are on the Rise

Real Estate Mortgages for New Applications are on the Rise

Boston Condos for Sale