The Mortgage Bankers Association reported that average rates on 30-year fixed mortgages fell to 6.51 percent, down from 6.59 percent the previous week.
Applications to refinance jumped 12 percent. Joel Kan, the trade group's deputy chief economist, said the drop "brought some borrowers off the sidelines."
Home-purchase applications edged up only 1 percent, unchanged from the previous week's tiny gain. The average loan size for purchases slipped to $381,400, the lowest since September. Kan noted that "buyers remain cautious" as listing prices stay within 2 percent of record highs set last summer.
The National Association of Realtors counts 1.08 million existing homes for sale, down 9 percent from a year earlier. Builders started 1.32 million units at an annual pace in February, below the 1.5 million pace economists say is needed to match household formation.
Adjustable-rate mortgages accounted for 7 percent of total applications, the smallest slice since October. When 30-year fixed rates hovered above 7 percent last fall, ARMs captured 12 percent of the market. The average ARM rate currently sits at 6.28 percent, narrowing the spread over fixed loans to 23 basis points.
The median FICO for approved purchase loans held at 745 for the fourth straight week, 30 points above the pre-2022 norm. Lenders rejected 11 percent of refinance applicants in March, up from 8 percent a year ago. Kan attributed the tighter standards to "ongoing uncertainty" in secondary mortgage markets.
The Mortgage Bankers Association reported that average rates on 30-year fixed mortgages fell to 6.51 percent, down from 6.59 percent the previous week. On a $400,000 loan, that eight-basis-point decline trims $126 from the monthly payment. The dip marks the third consecutive week of declines after rates peaked at 6.73 percent in late March.
Applications to refinance jumped 12 percent on a seasonally adjusted basis, the strongest pace since early January. Joel Kan, the trade group's deputy chief economist, said the drop "brought some borrowers off the sidelines." Total mortgage application volume rose 6 percent from the prior week, driven entirely by the refinancing bump.
Home-purchase applications edged up only 1 percent, unchanged from the previous week's tiny gain. The average loan size for purchases slipped to $381,400, the lowest since September. Kan noted that "buyers remain cautious" as listing prices stay within 2 percent of record highs set last summer.
The National Association of Realtors counts 1.08 million existing homes for sale, down 9 percent from a year earlier. New listings in March ran 14 percent below the pre-pandemic five-year average, Realtor.com data show. Builders started 1.32 million units at an annual pace in February, below the 1.5 million pace economists say is needed to match household formation.
Adjustable-rate mortgages accounted for 7 percent of total applications, the smallest slice since October. When 30-year fixed rates hovered above 7 percent last fall, ARMs captured 12 percent of the market. The average ARM rate currently sits at 6.28 percent, narrowing the spread over fixed loans to 23 basis points.
The median FICO for approved purchase loans held at 745 for the fourth straight week, 30 points above the pre-2022 norm. Lenders rejected 11 percent of refinance applicants in March, up from 8 percent a year ago. Kan attributed the tighter standards to "ongoing uncertainty" in secondary mortgage markets.
That monthly savings equals the average electric bill in Phoenix during July, according to EnergyStar.gov. Over five years, the lower rate saves $7,560 in interest on the typical $400,000 loan. Borrowers who locked at 6.73 percent in late March can still refinance penalty-free if they closed after March 15, the MBA clarified.
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