Mortgage applications dropped another 4%, despite rates being at their lowest level since February 2024.
Transcript:
Conway Gittens: Here’s what we’re watching on TheStreet today
Tech earnings are influencing Wall Street’s mood. Profits at Google parent Alphabet were better than expected but sales were a mixed bag. Total revenue at $84.7 billion was a tad ahead of forecasts, led by a 29 percent surge in cloud revenues. YouTube ad sales, however, did not match analysts forecasts. In addition, Overall spending at Alphabet was a bit high for investors’ tastes.
In other news: mortgage rates are down, but not by enough to lure buyers to sign on the dotted line. The average rate on a traditional 30-year home loan fell to 6.82 percent for the week ended July 19th – from 6.87 percent the week before. According to the Mortgage Bankers Association, that’s the cheapest mortgage since February.
That drop in rates, however, is not leading to a rush in new mortgages. Prospective homebuyers believe rates will further ease and are holding out for a better deal. Applications for new mortgages dropped 4 percent last week and plunged 15 percent compared to the same time a year ago.
Joel Kan, Vice President and Deputy Chief Economist, for the MBA said “Ongoing affordability challenges persist with rates at their current levels and with home-price appreciation still strong in many markets.”
Fresh housing data for June backs that up. New homes sales fell to their lowest since 2023, with the median sales price at $417,300. Meanwhile, sales of existing homes plunged to their lowest of the year; that median sales price rose to a record high of $426,900.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I”m Conway Gittens with TheStreet.
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