U.S. Mortgage Demand Falls 2.2% as 30-Year Rate Holds Near 6.58%
Updated
Updated · CNBC · Jul 8
U.S. Mortgage Demand Falls 2.2% as 30-Year Rate Holds Near 6.58%
2 articles · Updated · CNBC · Jul 8
Summary
Total U.S. mortgage applications fell 2.2% last week, with the MBA’s holiday-adjusted index showing demand still stalled as borrowing costs stayed elevated.
The average 30-year fixed conforming rate edged up to 6.58% from 6.57%, leaving little incentive to refinance because many borrowers need roughly a 75-basis-point rate cut to make it worthwhile.
Refinance applications dropped 4% on the week, while purchase applications slipped 1%; purchase demand still ran 5% above a year earlier and refinance activity was 8% higher.
VA purchase applications rose 5% even as conventional purchase activity declined, suggesting lower-down-payment government-backed loans are gaining traction.
Mortgage News Daily said rates moved slightly higher again this week as renewed Iran oil-export concerns lifted inflation fears, a backdrop that could keep mortgage costs under pressure.