Mortgage application volume has fallen 21.5% lower than last year...why? An increase in interest rates on both 30-year fixed-rate mortgages and even refinance loans have made people steer clear of homeowning lately. Partner that with the millennial generation mentality of being unable to reach homeownership, and times may look bleak.
"Mortgage rates increased to their highest levels in almost a month following a relatively hawkish Fed statement last week, driving the decline in refinance activity. The FOMC announced the start of its plan to reduce the size of its balance sheet and indicated plans to increase short-term rates one more time this year," said MBA economist, Joel Kan.
On the other side of the coin, on a week to week basis, mortgage applications have increased by one percent week-over-week.
While the most obvious reasoning behind all this could be due to the slight increase in interest rates, fall is known to be high time for people and families to start applying for mortgages and refinancing. With the series of hurricanes affecting the lower states, this could be a larger factor in why applications have fallen.
As the home loan experts, Mortgage Advisor will continue to monitor mortgage rate trends in order to provide homeowners and those researching the market, the most up-to-date information possible.