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Kelsey Barberio: For the first time in more than two months, mortgage rates are on the rise. The rate on a 30-year mortgage increased by 5 basis points — climbing to 6.72% in the week that ended on March 14. The rate increase led to a more than 6% drop in total mortgage application volume, according to the Mortgage Bankers Association.
But despite the rate increase, applications for a mortgage to buy a home ticked up 0.1% – and are 6% higher than they were the same week a year ago. According to the MBA’s chief economist, “Purchase application volume inched up to its highest level in six weeks, led by a 3 percent increase in FHA purchase applications. Growing inventories of homes on the market and steadier mortgage rates are supporting home-buying activity thus far this spring.”
Applications to refinance a home loan, however, fell by 13% for the week — although they’re up a whopping 70% from this time last year.
Things could change quickly for mortgage rates. Fed Chairman Jerome Powell is expected to announce the FOMC’s decision on what it plans to do with interest rates on Wednesday, March 19.
That’ll do it for your daily briefing. From New York City, I’m Kelsey Barberio with TheStreet.
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