- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, decreased to 6.83% from 6.84%.
- Applications for a mortgage to purchase a home dropped 6% for the week and were 17% higher than the same week one year ago.
- Applications to refinance a home loan fell 1% for the week and were 30% higher the same week one year ago.
Interest rates on mortgages haven’t changed much in a few weeks, but rates aren’t the main concern for consumers. People are actually more concerned about economic uncertainty. This prevents some people from making important financial choices.
With NBC 7, you can watch San Diego News for free, anywhere, at any time.
Consequently, the seasonally adjusted index of the Mortgage Bankers Association showed a 3.8% decline in the overall amount of mortgage applications last week when compared to the week before.
For 30-year fixed-rate mortgages with conforming loan balances of $806,500 or less, the average contract interest rate dropped from 6.84% to 6.83%. For loans with a 20% down payment, the origination fee dropped from 0.62 to 0.60 points.
With our News Headlines email, you can receive the best local San Diego stories every morning.
Joel Kan, vice president and deputy chief economist at the MBA, stated that both purchase and refinance activity decreased during the week, causing mortgage applications to drop to their lowest level since May. “There is still plenty of uncertainty surrounding the economy and job market, which is weighing on prospective homebuyers’ decisions.”
Mortgage applications to buy a home fell 6% for the week, but they were 17% more than they were a year earlier. However, the volume is so tiny that the yearly comparison is skewed falsely upward.
“Applications for conventional, FHA, and VA purchase loans fell, despite slowing home-price growth and increasing levels of for-sale inventory in many regions,” Kan. said.
Money Report
Private company hiring bounced back with a 104,000 increase in July, ADP says
Apple is facing pressure from Wall Street to figure out its AI strategy
Delivered weekly to your inbox, CNBC’s Property Play with Diana Olick discusses fresh and changing prospects for real estate investors.
Sign up here to gain access right now.
The week saw a 1% decline in house loan refinance applications, compared to a 30% increase in the same period last year. The volume of refinances overall is likewise at an all-time low. This is the third consecutive week that refinances have decreased. Mortgage rates were practically the same last year, down only 1 basis point.
Mortgage rates began the week with a very tiny decline, but after the Federal Reserve’s interest rate announcement on Wednesday and Chairman Jerome Powell’s remarks, there may be a larger shift in either direction. The government’s monthly employment report, which is released on Friday, will be the next significant motivator.
-
Bank of America says these five stocks have more room to run ahead of earnings
-
These overbought stocks could take a dip after the market’s record gains
-
Goldman Sachs is getting worried about the economy
-
What the prediction markets are saying about the big Wall Street events ahead
Also on CNBC
-
China s supply-side ‘anti-involution’ push aims to cure deeper problems
-
China’s latest childcare subsidy policy is ‘just for show’, says consultancy
-
Hong Kong office market could be at a turning point: Hongkong Land CFO
