The Blubber

Per CNBC

The application for new mortgages has slowed down even more, as new data shows a 31% decrease from the same week a year ago. During this time, home purchases also dropped by 3%.

CNBC explains that this is because of the extended fear that it could take a while for interest rates to be lowered. The report stated that the fear was regarding the Feds "not lowering interest rates anytime soon."

Because of that, the demand for mortgages has increased to its lowest level once again. The last time this happened was in February, when the market also saw a massive decrease in mortgage applications.

MBA's chief economist Michael Fratantoni gave a statement regarding the volume decrease. He also commented on purchase volume and the lack of homes on the market.

Fratantoni: “Application volumes for both purchase and refinance loans decreased last week due to these higher rates... While refinance demand is almost entirely driven by the level of rates, purchase volume continues to be constrained by the lack of homes on the market.”

Refinance mortgage applications also saw a 7% drop the same week, showing an even bigger gap than total applications the same week a year ago, which was now 45% lower.

In March, it was reported that mortgage applications for home purchases fell to a 28-year-low. This came as the average rate of the 30-year fixed mortgage reached 71.%.

During that time, it was noted that for a buyer wanting to purchase a $400,000 home with a 20% downpayment on a 30-year fixed loan, the monthly payment, including principal interest, was around $230. This was reportedly higher compared to the 4% range a year ago, with 50% more downpayment needed.

In September, mortgage refinance hit its lowest level in 22 years. This came as interest grew from 6.25% to 6.52% for mortgages with $647,200 or less in loan balances.

See flow at unusualwhales.com/flow.

Other News:

• Mortgage applications for home purchases fall to a 28-year low
• Mortgage Refinance Hits Lowest in 22-Years as Interest Grows to 6.52% from 6.25%

Resources:

CNBC