"Real Estate Mortgage Demand Jumps Nearly 28% In One Week"

[Daniel Jackson]

Afternoon Atlanta! You might not have the time to read and keep up with real estate news, so feel free to keep up with my post. I'll share what I read as much as I can.  Published Wednesday January 18, 2023 by CNBC, Diana Olick : 

"Mortgage demand jumps nearly 28% in one week, as interest rates drop to lowest point in months"

"Consumers returned from the holiday season to find mortgage rates at their lowest point since September, and they are responding in dramatic fashion.

Mortgage application volume jumped nearly 28% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.23% from 6.42%, with points falling to 0.67 from 0.73 (including the origination fee) for loans with a 20% down payment.

Rates hit a recent high of around 7.2% at the end of October on the MBA’s survey but ended the year at 6.58%. One year ago, the average rate on the 30-year fixed was 3.64%.

Refinance demand made the biggest move, up 34% from the previous week, but it was still 81% lower than the same week one year ago. The refinance share of mortgage activity increased to 31.2% of total applications from 30.7% the previous week.

Applications for a mortgage to purchase a home rose 25% week to week but were 35% lower than the same week one year ago." - CNBC, Diana Olick