Wang Ying | Xinhua News Agency | Getty Images Mortgage rates fell for a second week in a row, but that didn’t revive demand from homeowners or potential buyers. Interest rates fell 10 basis points last week and have fallen 24 basis points in the past two weeks, but overall mortgage demand fell 5.4 percent from a week ago, according to data from the Mortgage Bankers Association. This week’s results include a holiday adjustment to account for early closings on the Friday before Independence Day. The average contract rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) fell to 5.74% from 5.84%, with units increasing to 0.65 from 0.64, including the origination fee; for loans with a 20% reduction. payment. “Mortgage rates fell for a second week in a row as growing concerns about an economic slowdown and heightened recession risks kept bond yields lower,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. Those concerns were reflected in mortgage refinance applications, which fell 8% for the week and were down 78% from the same week a year ago. The refinancing share of mortgage loan activity fell to 29.6% of total applications from 30.3% the previous week. Home purchase applications were also down for the week and year – down 4% and 17%, respectively. “Rates are still significantly higher than a year ago, so applications for home purchases and refinances remain subdued. Purchase activity is hampered by continued affordability challenges and low inventory,” Kan said. . Realtor.com released its June housing report last week, which showed a rebound in for-sale inventory, rising at its fastest annual rate ever, up 18.7% year-over-year. However, there are still 53.2% fewer homes for sale compared to June 2019. “Our data in June shows that the inventory recovery accelerated, recording the second consecutive month of active listings growth in nearly three years. We expect these improvements to continue,” said Danielle Hale, chief economist at Realtor.com, but he added: “The typical buyer has yet to see any real relief from the brisk sale of homes and record high prices.” According to the Mortgage Bankers Association, the average home loan size is $405,200, down from $413,500 for the week ended June 24.
