Business is booming.

US mortgage applications contract again as rates hit 22-year high

Read more: US inflation rate rises in July

Refinance and purchase applications (both down 2%) ended the week at a six-month low, driving the decline in overall application activity.

On the bright side, applications for purchase loans on newly constructed homes remained strong, up 35.5% from July 2022, as “new homes continued to account for a growing share of homes available for sale,” Kan noted.

“The FHA share of purchase applications was 24.2%, the highest share since May 2020, and has increased in four of the last five months,” Kan said in a separate MBA report. “FHA purchase loans are a popular option for many first-time homebuyers, and this increasing trend in the FHA share is indicative of more first-time buyers looking to new homes as an option, given the lack of for-sale inventory among existing homes and challenging affordability conditions.”

Want to keep up with the latest mortgage news? Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.

Source link

Comments are closed, but trackbacks and pingbacks are open.