Boston Condos for Sale and Apartments for Rent
What Will Happen with Massachusetts Mortgage Rates this Week?
Boston condo for sale mortgage rates continues its rise.
You can’t spend too much time reading/watching the news recently without being well aware of the relatively unprecedented surge in mortgage rates seen so far in 2022. In particular, the month of March was one the worst on record with one individual week in March tying a week in June 2013 as the worst in more than 25 years. All that to say, rates are much higher!
The higher borrowing costs have had the same impact they always have when it comes to refinance applications. In this week’s Mortgage Application Survey from the Mortgage Bankers Association (MBA), refis dropped another 10 percent, and are now 62 percent lower than the same week last year.
The purchase market remains a different story.
While purchase applications also declined last week, they are only 9 percent below the same week last year and still higher than most of the past decade before the Covid. Keep in mind that the survey only tracks applications, so by the time all-cash demand is factored into the purchase market, housing demand has yet to show any major panic over the rising rate environment.
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What Will Happen with Massachusetts Mortgage Rates this Week?
Mortgage rates retreat from 3% threshold
Mortgage rates increased last week as Boston condo refinancing applications fell and purchase applications held steady.
The Mortgage Bankers Association’s weekly survey of 75 percent of the residential mortgage market saw the average 30-year fixed-rate mortgage increase to 3.13 percent, up seven basis points from 3.06 percent the previous week. Jumbo rates also increased by one basis point to 3.41 percent.
MBA’s refinance index dropped by an adjusted 5 percent last week, though it was 38 percent higher than a year earlier. Joel Kan, MBA’s head of forecasting, attributed the drop in refinancings to the rising rates.
Last week, Freddie Mac and Fannie Mae announced they would charge lenders a new 0.50 percent fee on refinancing loans starting in September. According to MBA, that would tack on another $1,400 for the average consumer looking to replace existing debt.
On the purchase side, Kan pointed to the recent release of July housing starts data, which saw a 22.6 percent month-over-month increase in the number of homes under construction, as a “bright spot” that signals the industry’s response to “the strong demand for buying a home.”
MBA’s index tracking applications for all home loans fell by an adjusted 3.3 percent last week, compared to the first week of August
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