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NBC News
6 days ago
- Business
- NBC News
Mortgage rates rose to the highest level since January, but demand from homebuyers still grew. Here's why.
Mortgage rates rose for the third straight week last week to the highest level since January, but some homebuyers were undeterred. Mortgage applications to purchase a home climbed 2% compared with the previous week and were 18% percent higher than the same week one year ago, according to the Mortgage Bankers Association's seasonally adjusted index. This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.98% from 6.92%, with points decreasing to 0.67 from 0.69, including the origination fee, for loans with a 20% down payment. 'Purchase applications were up over the week and continue to run ahead of last year's pace as increased housing inventory in many markets has been supporting some transaction volume, despite the economic uncertainty,' said Joel Kan, an MBA economist. Applications to refinance a home loan took the rate increase harder, falling 7% for the week. Refinance demand was, however, still 37% higher than the same week one year ago. 'Conventional refinances were down 6%, and VA refinances dropped 16%,' added Kan. Mortgage rates edged slightly lower to start this holiday-shortened week, after a monthly report on consumer confidence. 'The Consumer Confidence Index was stronger than expected, but one of its components raised concern over the labor market,' wrote Matthew Graham, chief operating officer at Mortgage News Daily. 'Weaker labor conditions tend to push rates lower, all else equal. The underlying bond market improved after that and several mortgage lenders issued revised rates in response.'
CNBC
6 days ago
- Business
- CNBC
Mortgage rates rose to the highest level since January, but demand from homebuyers still grew. Here's why.
Mortgage rates rose for the third straight week last week to the highest level since January, but some homebuyers were undeterred. Mortgage applications to purchase a home rose 2% compared with the previous week and were 18% percent higher than the same week one year ago, according to the Mortgage Bankers Association's seasonally adjusted index. This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.98% from 6.92%, with points decreasing to 0.67 from 0.69, including the origination fee, for loans with a 20% down payment. "Purchase applications were up over the week and continue to run ahead of last year's pace as increased housing inventory in many markets has been supporting some transaction volume, despite the economic uncertainty," said Joel Kan, an MBA economist. Applications to refinance a home loan took the rate increase harder, falling 7% for the week. Refinance demand was, however, still 37% higher than the same week one year ago. "Conventional refinances were down 6%, and VA refinances dropped 16%," added Kan. Mortgage rates edged slightly lower to start this holiday-shortened week, after a monthly report on consumer confidence. "The Consumer Confidence Index was stronger than expected, but one of its components raised concern over the labor market," wrote Matthew Graham, chief operating officer at Mortgage News Daily. "Weaker labor conditions tend to push rates lower, all else equal. The underlying bond market improved after that and several mortgage lenders issued revised rates in response."
Economic Times
30-04-2025
- Business
- Economic Times
U.S economy in dire straits? Housing market roiled as mortgage demand drops and hiring slows
US housing market faces headwinds as mortgage applications decline amid economic uncertainty and a weakening labor market. Despite relatively flat mortgage rates, consumer confidence is dampened, leading to subdued home purchase activity. Refinancing also slows, with borrowers awaiting more significant rate drops, while concerns rise over slower wage growth and its impact on hiring decisions. Tired of too many ads? Remove Ads US Housing Market Struggles Amid Economic Uncertainty Tired of too many ads? Remove Ads Refinancing Activity Slows Down Weakening Job Growth Raises Concerns Slower Wage Growth Economists React to the Slowdown FAQs The American housing market is suffering from economic uncertainty , with mortgage applications still falling against increasing fears about the country's financial well-being, as per a applications to buy homes declined last week by 4%, reported CNBC. While mortgage rates have remained relatively flat, the current economic situation, combined with indications of a weakening labor market, seems to be dampening consumer confidence, as per the Mortgage Bankers Association 's most recent data found that the volume was just 3% higher than the same week one year ago, even though interest rates last year were considerably higher, reported president and deputy chief economist at the MBA, Joel Kan explained that, 'Mortgage application activity, particularly for home purchases, continues to be subdued by broader economic uncertainty and signs of labor market weakness , dropping to the slowest pace since February,' quoted also mentioned that 'With slowly-increasing housing inventory in many markets and first-time homebuyers still in the mix, FHA purchase applications fared better with only a slight decline,' as quoted in the to CNBC, applications to refinance a home loan fell 4% for the week and increased 42% more than the same week one year economist pointed out that the, 'Refinance activity dipped again, as mortgage rates remained close to 7%, and borrowers hold out for a bigger decline in rates. Given the pullback in refinancing, the average loan size for refinances declined to just under $290,000, the lowest level in three months,' as quoted in the per ADP estimate, which serves as an indication of Friday's nonfarm payrolls data from the Bureau of Labor Statistics, the private sector payrolls increased by only 62,000 in April, the smallest rise since July 2024, as per CNBC. This is because of the increased uncertainty of US president Donald Trump's tariffs and the impact they would have on hiring plans and broader economic conditions, according to the gains have also slowed down, as it increased just 4.5% from a year ago for those staying in their jobs, down 0.1 percentage point from March, reported CNBC. While, those switching jobs saw a rise of 6.9%, up 0.2 percentage point in the previous month, as per the chief economist, Nela Richardson said, 'Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data,' adding that, 'It can be difficult to make hiring decisions in such an environment,' quoted uncertainty and concerns about the labor market have led many potential buyers to not apply for mortgages, as per sector payrolls grew by just 62,000 jobs in April, the smallest rise since July 2024, as per ADP estimate.
Time of India
30-04-2025
- Business
- Time of India
U.S economy in dire straits? Housing market roiled as mortgage demand drops and hiring slows
The American housing market is suffering from economic uncertainty , with mortgage applications still falling against increasing fears about the country's financial well-being, as per a report. US Housing Market Struggles Amid Economic Uncertainty Mortgage applications to buy homes declined last week by 4%, reported CNBC. While mortgage rates have remained relatively flat, the current economic situation, combined with indications of a weakening labor market, seems to be dampening consumer confidence, as per the report. #Pahalgam Terrorist Attack A Chinese shadow falls on Pahalgam terror attack case probe How India can use water to pressure Pakistan Buzzkill: How India can dissolve the Pakistan problem, not just swat it The Mortgage Bankers Association 's most recent data found that the volume was just 3% higher than the same week one year ago, even though interest rates last year were considerably higher, reported CNBC. GIF89a����!�,D; 5 5 Next Stay Playback speed 1x Normal Back 0.25x 0.5x 1x Normal 1.5x 2x 5 5 / Skip Ads by by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Ethiopia: New Small Electric Car For Seniors. Prices Might Surprise You. Electric Cars | Search Ads Vice president and deputy chief economist at the MBA, Joel Kan explained that, 'Mortgage application activity, particularly for home purchases, continues to be subdued by broader economic uncertainty and signs of labor market weakness , dropping to the slowest pace since February,' quoted CNBC. Kan also mentioned that 'With slowly-increasing housing inventory in many markets and first-time homebuyers still in the mix, FHA purchase applications fared better with only a slight decline,' as quoted in the report. Live Events Refinancing Activity Slows Down According to CNBC, applications to refinance a home loan fell 4% for the week and increased 42% more than the same week one year ago. The economist pointed out that the, 'Refinance activity dipped again, as mortgage rates remained close to 7%, and borrowers hold out for a bigger decline in rates. Given the pullback in refinancing, the average loan size for refinances declined to just under $290,000, the lowest level in three months,' as quoted in the report. Weakening Job Growth Raises Concerns As per ADP estimate, which serves as an indication of Friday's nonfarm payrolls data from the Bureau of Labor Statistics, the private sector payrolls increased by only 62,000 in April, the smallest rise since July 2024, as per CNBC. This is because of the increased uncertainty of US president Donald Trump's tariffs and the impact they would have on hiring plans and broader economic conditions, according to the report. Slower Wage Growth Wage gains have also slowed down, as it increased just 4.5% from a year ago for those staying in their jobs, down 0.1 percentage point from March, reported CNBC. While, those switching jobs saw a rise of 6.9%, up 0.2 percentage point in the previous month, as per the report. Economists React to the Slowdown ADP's chief economist, Nela Richardson said, 'Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data,' adding that, 'It can be difficult to make hiring decisions in such an environment,' quoted CNBC. FAQs What caused the drop in mortgage applications? Economic uncertainty and concerns about the labor market have led many potential buyers to not apply for mortgages, as per CNBC. What's the latest job growth figure? Private sector payrolls grew by just 62,000 jobs in April, the smallest rise since July 2024, as per ADP estimate.
Yahoo
10-04-2025
- Business
- Yahoo
Homeowners and home buyers seize a brief — but steep — drop in mortgage rates
A brief, big dip in mortgage rates this week prompted homeowners and home buyers to seize the moment, sending mortgage applications to a six-month high. Mortgage rates dropped to the lowest level in five months, due in part to financial markets feeling uncertain about the future of the U.S. economy in the face of widespread tariffs on imported goods. 'This is not in my tolerance level': I inherited a $600K portfolio from my father. Should I move it all into bonds? Here's what it may take for this beaten-down stock market to solidly rebound The stock market staged an epic rally after Trump's tariff pause. Volatility will continue. Trump's tariff pause takes away bad outcomes — but this UBS strategist says investors should still sell rallies. These 20 stocks have risen during Trump's trade tirade. Analysts see up to 30% additional upside. The 30-year fixed-rate mortgage fell to 6.61% as of April 4, which spurred a jump in home-buying and refinancing activity, according to a weekly report by the Mortgage Bankers Association, an industry trade group. Purchase activity, which refers to home buyers applying for mortgages to purchase a home, rose 9.2% from the week prior. The data suggest that many home buyers have been waiting for lower rates. The housing market is in one of its busiest seasons, and a dip in rates came at the right time for those fed up with high prices and high interest rates. The median U.S. price of an existing home as of February was $398,400. Refinance activity rose 35.3% from the previous week. 'Refinance applications rose … to the highest level in six months, as borrowers with larger loan sizes tend to be more sensitive to rate changes,' Joel Kan, deputy chief economist and vice president at the MBA, said in a statement. The average size of the loan being refinanced over the week was $399,600, he noted. Mortgage rates across various types of home loans plunged across the board. The average contract rate for a 30-year mortgage for homes sold for $806,500 or less was 6.61% for the week ending April 4. That was down 9 basis points from the previous week. The rate for jumbo loans, or 30-year mortgages for homes sold for more than $806,500, was 6.65%, down 11 basis points from the previous week. The average rate for a 30-year mortgage backed by the Federal Housing Administration was 6.33%, down 4 basis points from the week prior. Those loans are often used by first-time home buyers. The average 15-year mortgage rate was down 11 basis points, to 5.93%. The rate for five-year adjustable-rate mortgages was down 11 basis points, to 5.93%. Rate-and-term refinances saw the biggest jump in volume, increasing 52% from a month ago, according to a monthly report by Optimal Blue, a mortgage-data platform. Homeowners were also swapping out their current mortgages for bigger ones. Cash-out refinances jumped 20% in March compared to the previous month, Optimal Blue said. S&P 500 rebound collapses in biggest U-turn since at least 1978. Investors can't shake tariff jitters. I'm 5 years from retiring. Before Wednesday's rally, I moved my money into non-U.S. stocks. Did I make a big mistake? Here's the unsettling reason the world's most important market is getting hammered by Trump's tariffs 'She has been telling him lies': My sister convinced my father to sign everything over to her. What can I do? This strategist told investors to raise cash — in November. Now he sees a path to Dow 50,000 and $200 oil Sign in to access your portfolio
