hot Real estate market Due to concerns about the increase in COVID cases and fluctuations in interest rates, it may stagnate after the high level rebounded since January.
A survey released Mortgage Bankers Association It said on Wednesday that after a 16% surge in the previous week, mortgage applications fell 4% in the week ending July 16.
Joel Kan, MBA’s vice president of economics and industry forecasts, said, “The yield on the 10-year U.S. Treasury note fell sharply last week, partly because investors are increasingly worried COVID variants And its impact on global economic growth.
“As a result, mortgage interest rates have seen mixed changes. The 30-year fixed interest rate rose slightly to 3.11% after falling for two consecutive weeks. Interest rates in other surveys fell. About 20% of refinancing borrowers used 15-year fixed interest rates. Interest rate loans fell to 2.46%, which is the lowest level since January 2021,” he added.
However, the proportion of refinancing to the total number of mortgage applications rose to 64.9% from 64.1% in the previous week.
ARM mortgages fell to 3.3% of total applications, while FHA accounted for 9.6% of total applications, an increase of 0.1% from a week ago. The MBA survey showed that Virginia’s mortgages jumped from 10.3% to 10.5%, and the USDA mortgages remained unchanged this week at 0.5%.
The average contract rate of 30-year fixed-rate mortgages with eligible loan balances increased by 3.11%, while the average contracted rate of 30-year fixed-rate mortgages with large loan balances fell by 3.13%.
Also falling was the 30-year fixed-rate mortgage backed by FHA, which fell by 3.08%.
15-year fixed-rate mortgages also fell from 2.48% to 2.46%, and 5/1 ARMs mortgages fell from 3.02% to 2.74%.
Concerns about economic recovery Coronavirus disease cases As experts have warned, the derailment of economic recovery across the United States has raised concerns that threaten market progress. Another wave of infections and deaths From the Delta variant, which now accounts for 83% of all new virus cases.
Photo: Reuters/Larry Downing
