Mortgage applications decline after rate increase MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

 Mortgage applications fell seven point seven percent in the week ended February 10, 2023 as mortgage rates rose after five weeks of declines, the Mortgage Bankers Association said, citing its Weekly Mortgage Applications Survey. The average contract interest rate for conforming thirty year mortgages of $726,200 or less jumped to six point thirty nine percent from six point eighteen percent the week before, while the rate for thirty year fixed-rate mortgages backed by the FHA climbed to six point twenty five percent from six point fourteen percent.

 At the same time, MBA’s refinance index fell thirteen percent from the week before, as the refinance share of mortgage activity decreased to thirty two percent of mortgage applications from thirty three point nine percent in the preceding week. The average contract interest rate for thirty year fixed-rate mortgages with jumbo loan balances of more than $726,200 increased to six point twenty six percent from five point ninety six percent, and the average contract interest rate for a fifteen year fixed-rate mortgage increased to five point eighty five percent from five point sixty four percent.

 “Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time,” MBA Vice President and Deputy Chief Economist Joel Kan said in a news release. “Potential buyers remain quite sensitive to the current level of mortgage rates, which are more than two percentage points above last year’s levels and have significantly reduced buyers’ purchasing power.” 

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