Home purchase mortgage applications were 19% lower than the same week in July last year, and 6% lower than the prior week. Those numbers are a direct reflection of the impact inflation is having on our economy.
According to an article written by Matthew Graham for Mortgage News Daily “Adults who are old enough to remember 1994 have always had an ace in the hole when it comes to today’s young whipper snappers complaining about abrupt spikes in mortgage rates. Sure, even older adults have the first few months of 1980, but 1994 was a more compelling example because it wasn’t part of the once-in-a-lifetime inflationary spike. As such, it is a more worthy comparison to any modern example of rate volatility. As of today, the race between the first few months of 1994 and 2022 are neck and neck in terms of damage done to mortgage rates in a short amount of time.”
Whether you are in the market to buy or refinance a home, everyone is talking about the rising mortgage interest rates! Many predictions and questions are included in conversations on this topic, along with the variety of national and worldwide changes that are affecting the rates.
According to multiple industry sources, mortgage rates have reached the highest point in recent months, and may continue to rise. This news may prompt those who have been waiting to refinance or purchase to take action now.
The mortgage loan market has had shifts over the past couple months with an up this week, down last week pattern. Within that pattern is statistics that show refinance volume has slowed while first time home buyer applications have increased.
After seeing mortgage rates increase in the first quarter of 2021, homeowners and buyers that are in the process of seeking mortgage loans were excited to see mortgage rates drop to the lowest levels seen in the past month.
Homeowners took advantage of February’s mortgage refinance interest rates below 3% with a resyktubg 68% of all mortgage loans being refinance loans. Although rates have slowly increased in March, the refinance activity is still very high.
Mortgage interest rates have begun to rise, and as a result January saw the first decrease in mortgage refinance volume since November 2020. The long running record of historically low rates may be news of the past after several weeks of rising rates.