Mortgage Demand Rises as Rates Decline, Spurring More Housing Activity
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Mortgage demand increased over the past two weeks as rates declined recently. The mortgage application index rose to a 5-week high.
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Purchase and refinance applications both rose compared to the prior week, though remain far below 2021 levels.
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Mortgage rates dipped to 7.61% on average, down from around 7.91% a few weeks ago. This helped spur more housing demand.
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Housing inventory remains very low, down 45% from pre-pandemic levels. Many sellers are reluctant to list homes and give up low rates.
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The Fed's interest rate hikes have cooled the housing market by pushing up mortgage rates. More hikes are likely, keeping rates elevated.