Rate hikes haven’t depressed interest in purchase mortgages – yet
Updated: Apr 11
Interest in residential mortgage loans fell 6.8% for the week ending March 25 as rates jump even closer to the 5% mark, according to the Mortgage Bankers Association‘s latest survey.
Few borrowers these days have an incentive to refinance their mortgage. According to the MBA, refi applications fell 15% from the prior week and 60% from a year ago. Meanwhile, the seasonally adjusted purchase index increased 0.64% from one week earlier, showing resilience while rates climb, but was still down 10.1% year over year.
“Mortgage rates jumped to their highest level in more than three years last week, as investors continue to price in the impact of a more restrictive monetary policy from the Federal Reserve,” Mike Fratantoni, MBA’s senior vice president and chief economist, said in a statement.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) increased to 4.80% from 4.50%. Meanwhile, for jumbo mortgage loans (greater than $647,000), rates jumped to 4.40% from 4.11% in the same period. March 30, 2022, 7:00 amBy Flávia Furlan Nunes