Mortgage applications continue falling in latest weekly survey: Massachusetts Homebuyers Homeownership 

Mortgage applications fell 6.8 percent on a seasonally adjusted basis during the week ended March 25, 2022 as mortgage rates hit their highest level in three years, the Mortgage Bankers Association said, citing its Market Composite Index. The average contract interest rate for conforming thirty year mortgages of six hundred forty seven thousand two hundred dollars or less jumped to 4.8 percent from 4.5 percent, while the rate for thirty year fixed rate mortgages backed by the Federal Housing Administration increased to 4.66 percent from 4.4 percent.

 “Even with the ongoing climb in rates, purchase application volumes were little changed last week. This is particularly auspicious, as we are now in the beginning of the spring homebuying season, and those shopping for homes are struggling with not only higher and more volatile mortgage rates, but also an ongoing shortage of homes on the market,” MBA Senior Vice President and Chief Economist Mike Fratantoni said in a press release. “Given these hurdles, it appears to be promising news that purchase application volume has not declined, as many potential buyers are likely feeling the squeeze in their purchasing power from the jump in rates.”

 The average contract interest rate for thirty year fixed mortgages with jumbo loan balances of more than six hundred forty seven thousand two hundred dollars surged to 4.40 percent from 4.11 percent, and the average contract interest rate for a fifteen year fixed rate mortgage increased to 4.01 percent from 3.76 percent. On an unadjusted basis, the market composite index, which measures mortgage loan application volume, slid six percent. The refinance index, meanwhile, fell fifteen percent from the previous week and was down sixty percdent from the same week a year ago. The refinance share of mortgage activity decreased to 40.6 percent of total applications from 44.8 percent the previous week.

 The seasonally adjusted purchase index rose one percent from the previous week, while the unadjusted purchase index gained one percent as well but was ten percent lower than one year ago. The adjustable rate mortgage share of activity increased to 6.6 percent of total applications. The FHA share of total applications rose to 9.3 percent, while the VA share of total applications decreased to 9.5 percent from 9.8 percent. The USDA share of total applications rose one basis point to 0.5 percent. 

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Both seller's agent fees and buyer agent's fees are part of a typical real estate transaction and are included in the final negotiated purchase price of the property. There should be no additional fees to the buyer for a buyer's agent above and beyond the negotiated purchase price of a home unless specifically agreed in writing between the buyer and agent before an offer is made.

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