01/15/2024
Dear Friends ..
In the latest mortgage market update from CNBC (source: link):
Rate Movement: Mortgage rates inched higher for the second consecutive week, reaching an average of 6.81% for 30-year fixed-rate mortgages with conforming loan balances.
Application Volume: Total mortgage applications rose by 9.9% last week. Notably, refinance applications surged by 19%, while applications for home purchases increased by 6%.
Refinancing Trends: Despite a 39 basis point increase in the 30-year fixed rate compared to a year ago, refinancing applications were 30% higher than the same week in the previous year.
Home Purchase Applications: Applications for home purchases, though up by 6%, remain 16% lower than the same week one year ago, reflecting ongoing challenges with limited housing supply and high prices.
Market Commentary: Real estate agents report a new surge in demand from buyers who were previously deterred by higher rates. Consumer expectations indicate a belief that mortgage rates may decrease further.
Economic Indicators: The market is closely watching Thursday's release of the monthly consumer price index, which could impact mortgage rates depending on its implications for inflation.
In summary, the CNBC-reported mortgage market is showing mixed trends, with increased activity in both refinancing and home purchase applications. Challenges persist, primarily driven by limited housing supply and elevated home prices.
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Larry Clinton 949.637.8468
