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Fratantoni noted that refi application volume is now 60% below last year’s levels, consistent with MBA’s forecast for 2022.
Refi applications plunged 15% from the previous week, while purchase applications increased 1% week over week. Consequently, the refinance share of mortgage activity was down from 44.8% to 40.6% of total applications.
“Even with the ongoing climb in rates, purchase application volumes were little changed last week. This is particularly auspicious, as we are now at the beginning of the spring homebuying season, and those shopping for homes are struggling with not only higher and more volatile mortgage rates but also an ongoing shortage of homes on the market” Fratantoni said.
Read more: Bidding wars escalate as housing crunch worsens
“Given these hurdles, it appears to be promising news that purchase application volume has not declined, as many potential buyers are likely feeling the squeeze in their purchasing power from the jump in rates.”
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