Mortgage rates dipped slightly last week, prompting a small increase in refinance activity. Total mortgage demand was essentially unchanged from the previous week according to the Mortgage Bankers Association.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 5.84% from 5.98% and points decreased to 0.64 from 0.77 for loans with a 20% down payment.
Refinancing applications rose 2% for the week, but were 80% lower than a year ago. The number of mortgage applications increased from the previous week.
After rising more solidly the previous week, mortgage demand to purchase a home increased by a small amount. It was lower than it was a year ago.
The recent jump in mortgage rates, high home prices, and economic uncertainty have caused overall purchase activity to weaken. Since it hit a record $460,000 in March 2022, the average purchase loan amount has continued to decline.
Higher mortgage rates and buyers not being able to borrow as much at those higher rates may be the reason for the drop in the loan size.
Mortgage interest rates went up at the end of last week and continued this week according to another read. The 30-year fixed rate is close to 6 percent again.
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