Mortgage refinancing dries up Fox Business

Despite a decline in mortgage rates in the past week, one area of ​​the mortgage market isn’t seeing relief — the refinance market.

The Refinance Index decreased 2% from the previous week, according to the weekly survey from the Mortgage Banker’s Association.

The refinance share of mortgage activity decreased to 27.6% of total applications from 28.1% the previous week.

“Refinance activity remained depressed, down 88% over the year,” said Joel Kan, MBA’s vice president and deputy chief economist. “There is very little refinance incentive with rates so much higher than last year.”

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A home sits for sale in Geneva, Illinois, June 23, 2009. (REUTERS/Jeff Haynes/Reuters Photos)

Mortgage rates declined as Treasury yields moved lower following signs of easing inflation.

The average contract interest rate for 30-year fixed mortgages decreased to 6.90% from 7.14%.

With the reduction, there were some bright spots in the latest data.

Classic Tudor Residential Home

A classic Tudor style house in the mid-west of the United States for sale with sale sign on lawn. The two stories property with an old world facade, featuring a fire place chimney. (iStock/iStock)

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Overall demand for mortgage applications increased 2.7% from the previous week.

home for sale

A home for sale in Florida. (Stephen M. Dowell/Orlando Sentinel/Tribune News Service via Getty Images/Getty Images)

“Application activity, adjusted to account for the Veterans Day holiday, increased in response to the drop in rates – driven by a 4% rise in home purchase applications,” said Kan. “Purchase applications increased for all loan types, and the average purchase loan dipped to its smallest amount since January 2021”.

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The survey covers over 75% of all US retail residential mortgage applications and has been conducted weekly since 1990.

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