Mortgage rates have been increasing since the start of 2022, but buyers at first seemed unconcerned, with buyers rushing back before rates increase further.
- Mortgage applications to buy a home fell 10% last week compared with the prior week and were 12% lower YoY.
- The average loan size jumped to a record high at $446,000, signaling that most of the buying activity is on the higher end of the market, where there is more supply.
- Supply is another major factor in the demand for mortgages. The total inventory of homes for sales plunged 28% nationally in January from January of 2021.
- New listings also fell by 9%, the second consecutive month of declines. That fall is likely moving into February as sellers are not rushing into the market.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 3.83% from 3.78%, with points dropping to 0.40 from 0.41 for loans with a 20% down payment.
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