Homebuyers Take Advantage of Easing Mortgage Rates

Homebuyers , Take Advantage of , Easing Mortgage Rates.

'Newsweek' reports that the number of mortgage applications increased for the week ending June 21 as the cost of home loans has begun to ease.

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According to the Mortgage Bankers Association (MBA) Market Composite Index, there was a nearly 1% increase in mortgage applications from the week before.

MBA data shows that it is the third consecutive week of an increase in application numbers.

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At the same time, refinancing activity was up 28% compared to the same time in 2023.

In recent weeks, mortgage rates have trended below 7%, helping to slightly reduce the cost of monthly payments for potential homebuyers.

Mortgage rates were mostly lower last week, with the 30-year fixed rate declining slightly to 6.93 percent, the lowest level in more than three months, Joel Kan, MBA's deputy chief economist, via 'Newsweek'.

According to Joel Kan, MBA's deputy chief economist, the drop in rates has failed to convince more homeowners to change the terms of their existing loans.

According to Redfin data, almost 90% of U.S. homeowners have mortgages below 6%, cheaper than the current market.

Purchase applications did see a small increase after adjusting for the Juneteenth holiday, Joel Kan, MBA's deputy chief economist, via 'Newsweek'.

Government purchase loans, primarily FHA and VA, saw gains of more than 2 percent over the previous week, as homebuyers in those segments sought to take advantage of the recent rate relief, Joel Kan, MBA's deputy chief economist, via 'Newsweek'