Mortgage rates are increasing again due to an increase in mortgage application volume. This often happens when borrowers realize rates have hit bottom and rush to get in before they move higher. Total mortgage application rose 9.6% last week. Refinance demand, which is sensitive to small rate moves, increased 13% from the previous week and is 188% higher than a year ago. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 4.03% from 3.98%. With rates still in the 4% range refinance activity is expected to see moderate growth until the end of 2020.
https://www.cnbc.com/2019/11/13/weekly-mortgage-applications-jump-to-highest-level-in-over-a-month.html
I think that this comes as a surprise due to the fact that Fed announced their plan to decrease interest rates.
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ReplyDeleteMany things are based around the housing market so this is important to watch as it adds another strain on the consumer during this already tumultuous time.
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