The weekly demand for the mortgage falls 6%, since housing buyers remain ‘in the fence’

The mortgage rates fell slightly last week, but so did the demand for the mortgage, since the affordability of the house continues to set aside the possible buyers.

The total volume of the mortgage application fell 6.6% for the week, according to the seasonally adjusted index of the Mortgage Banqueros Association.

The interest rate of the average contract for 30 -year fixed rate mortgages with compliant loan balances ($ 766,550 or less) decreased to 6.93% of 6.95%, with points that increase to 0.66 of 0.64 (including the origin rate) For loans with 20% of low payment.

“The mortgage rates decreased on average during the week, since the markets eliminated the unexpectedly strong inflation data. Despite the decrease in mortgage rates, mortgage requests decreased to their slowest pace since the beginning of the year,” he said Joel Kan, MBA economist.

Applications to refinance a mortgage loan, which had been increasing, fell 7% during the week, but were 39% higher than the same week a year ago. The percentage changes from week to week have been great simply because the general volume of refinancing is very low. The vast majority of today’s borrowers have mortgages with significantly lower rates than is now offered.

Applications for a mortgage to buy a house fell 6% during the week, but were 7% more year after year. The affordability of housing continues to weigh on potential buyers, and economic uncertainty, especially with respect to the effect of potential tariffs, they only add to pressure.

“Purchase requests decreased for the week, since buyers remained in the fence, although the loosening of the inventory can help support the activity in the coming months,” Kan added.

The mortgage rates moved a little higher to start this week, but the weeks cut on vacation tend to see more volatility in the bond market.