Mortgage rates hit highest level since July, crushing application demand

Mortgage rates hit highest level since July, crushing application demand


Residential homes in Discovery Bay, California, US, on Thursday, Nov. 7, 2024. Mortgage rates in the US increased to the highest level since July. 

David Paul Morris | Bloomberg | Getty Images

Mortgage rates last week moved higher for the fourth week in a row. That caused already very weak mortgage demand to drop even further. Total mortgage application volume fell 3.7% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. An additional adjustment was made for the New Year’s holiday.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 6.99% from 6.97%, with points decreasing to 0.68 from 0.72 (including the origination fee) for loans with a 20% down payment.

Applications to refinance a home loan rose 2% from the previous week but were 6% lower than the same week one year ago. Rates are now 18 basis points higher than they were one year ago. As for the weekly gain, volume in refinances is so low right now, that percentages are skewing larger than they normally would.

Applications for a mortgage to purchase a home fell 7% for the week and were 15% lower than the same week one year ago. There is considerably more supply of homes for sale now than there was last January, but higher rates and higher home prices are clearly keeping buyers on the sidelines.

“Purchase applications declined for both conventional and government loans and dropped to the slowest weekly pace since February 2024,” said Joel Kan, vice president and deputy chief economist at the MBA. “Refinance applications increased despite higher rates, but the increase was compared to recent low levels and was entirely driven by an increase in VA refinances, which continue to show weekly swings.”

Mortgage rates moved higher to start this week, according to a separate survey from Mortgage News Daily, which had the 30-year fixed average at 7.14% on Tuesday. Economic data was the driving factor.

“ISM Services’ inflation component was one of the worst offenders, but higher job openings didn’t help.  The spike in yields was instantaneous but fairly well contained,” noted Matthew Graham, chief operating officer at MND.  

More economic data comes Wednesday with the release of the Federal Reserve’s meeting minutes and Friday with the all-important monthly employment report. Those will either keep rates on an upward trajectory or, perhaps, change the trend for the new year.

Don’t miss these insights from CNBC PRO



Source

India finds engine switch movement in fatal Air India crash, no immediate action for Boeing or GE
World

India finds engine switch movement in fatal Air India crash, no immediate action for Boeing or GE

Investigative officials stand at the site of Air India Boeing 787 which crashed yesterday, on June 13, 2025 in Ahmedabad, India. Ritesh Shukla | Getty Images A preliminary report by Indian aviation accident investigators said on Saturday the fatal Air India crash that killed 260 people in Ahmedabad last month showed the plane engines’ fuel […]

Read More
This coming earnings season could decide if a stock market at record highs has more room to run
World

This coming earnings season could decide if a stock market at record highs has more room to run

The upcoming earnings season will show investors whether the bull case for equities still holds. The second quarter reporting season comes at a pivotal point for the stock market, with the S & P 500 and Nasdaq Composite trading at all-time highs this week even after an onslaught of bad news regarding higher tariffs, a […]

Read More
Some Walmart garment orders from Bangladesh on hold due to U.S. tariff threat: Reuters
World

Some Walmart garment orders from Bangladesh on hold due to U.S. tariff threat: Reuters

Shoppers at the Walmart Supercenter in Burbank during Walmart’s multi-week Annual Deals Shopping Event in Burbank Thursday, Nov. 21, 2024. Allen J. Schaben | Los Angeles Times | Getty Images Suppliers to Walmart have delayed or put on hold some orders from garment manufacturers in Bangladesh, according to three factory owners and correspondence from a […]

Read More