Mortgage demand increased slightly for the first time in four weeks, with a modest uptick in refinance applications leading the way. But don’t expect it to continue.
Mortgage applications increased by 0.1% on a seasonally adjusted basis during the week ending April 5, according to the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey.
“Mortgage rates moved higher last week as several Federal Reserve officials reiterated a patient posture on rate cuts. Inflation remains stubbornly above the Fed’s target, and the broader economy continues to show resiliency,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement. “Unexpectedly strong employment data released last week further added to the upward pressure on rates. The 30-year fixed rate increased to 7.01%, the highest in over a month. Purchase applications were down almost five% to the lowest level since the end of February, but refinance applications were up 10%, driven particularly by VA refinance applications.”
Purchase loan application volume dropped by 5% from one week earlier. Meanwhile, refinance volume shot up by 10% from the prior week.
The MBA survey shows that the average mortgage rate for 30-year fixed loans with conforming balances ($766,550 or less) increased to 7.01%, up from 6.91% last week. Meanwhile, rates on jumbo loans (balances greater than $766,550) also increased week over week to 7.13%, up from 7.06%.
As of April 10, the 30-year fixed rate on HousingWire’s Mortgage Rates Center stood at 7.17%. On the back of hotter-than-expected inflation in March, Treasury spreads on Wednesday widened and loan originators told HousingWire rates were on the rise again.
