Revenue Agenda
  • Investing
  • Latest News
  • Editor’s Pick
  • Economy
  • Investing
  • Latest News
  • Editor’s Pick
  • Economy
No Result
View All Result
Revenue Agenda
No Result
View All Result
Home Editor's Pick

Mortgage demand grows, driven by sales of new homes

by
June 30, 2023
in Editor's Pick
0
Mortgage demand grows, driven by sales of new homes
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

Mortgage rates turned higher again last week. But the increase did not cut into mortgage demand, as buyers sought newly built homes.

Total mortgage application volume rose 3% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. An additional adjustment was made for the Juneteenth holiday.

Applications for a mortgage to purchase a home rose 3% for the week but were 21% lower year over year. These applications have increased for three straight weeks to the highest level since early May, despite still-high mortgage rates.

“New home sales have been driving purchase activity in recent months as buyers look for options beyond the existing-home market,” said Joel Kan, MBA’s vice president and deputy chief economist, in a release. “Existing-home sales continued to be held back by a lack of for-sale inventory as many potential sellers are holding on to their lower-rate mortgages.”

Sales of newly built homes in May soared 12% compared with April and were 20% higher than May 2022, according to a report Tuesday from the U.S. Census. Builders are driving demand in part by offering incentives, like paying down mortgage rates.

Last week the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.75% from 6.73%, with points remaining at 0.64 (including the origination fee) for loans with a 20% down payment. The average rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $726,200) rose more sharply to 6.91% from 6.80%.

More from CNBC

Nvidia dips on report U.S. considering new A.I. chip export restrictions for China Google cuts jobs at Waze as it continues to merge mapping products Treasury yields dip as investors weigh interest rate outlook

“The spread between the jumbo and conforming rates widened to 16 basis points, the third week in a row that the jumbo rate was higher than the conforming rate,” Kan said. “To put this into perspective, from May 2022 to May 2023, the jumbo rate averaged around 30 basis points less than the conforming rate.”

The widening spread and the increase in the jumbo rate stem from the recent regional bank failures. Lenders hold jumbo loans on their balance sheets, because Fannie Mae and Freddie Mac don’t buy loans of that size. Bank credit, especially at community banks, has tightened substantially, resulting in higher rates.

Applications to refinance a home loan rose 3% for the week but were 32% lower than the same week one year ago. The vast majority of borrowers today have mortgages with interest rates below 4%.

This post appeared first on NBC NEWS
Previous Post

Americans got stingier after a pandemic surge in giving, but donations remain high

Next Post

Lordstown Motors files for bankruptcy, sues Foxconn

Next Post
Lordstown Motors files for bankruptcy, sues Foxconn

Lordstown Motors files for bankruptcy, sues Foxconn

  • Trending
  • Comments
  • Latest
Top 10 Potash Countries by Production (Updated 2024)

Top 10 Potash Countries by Production (Updated 2024)

August 21, 2024
Top 10 Cobalt Producers by Country (Updated 2024)

Top 10 Cobalt Producers by Country (Updated 2024)

September 19, 2024
Sen. Peter Welch says Israel ground invasion would ‘exacerbate’ conditions in Gaza: ‘Grave concerns’

Sen. Peter Welch says Israel ground invasion would ‘exacerbate’ conditions in Gaza: ‘Grave concerns’

October 24, 2023
Top 10 Phosphate Countries by Production (Updated 2024)

Top 10 Phosphate Countries by Production (Updated 2024)

August 1, 2024
Lithium Universe LtdSpodumene Offtake Update

Lithium Universe LtdSpodumene Offtake Update

0
New Hampshire Gov. Sununu signs $15.2B ‘miracle’ budget into law

New Hampshire Gov. Sununu signs $15.2B ‘miracle’ budget into law

0

Pennsylvania House clears tax credits for new teachers, nurses, police officers

0
Evers signs bipartisan sales tax bill aimed at sparing Milwaukee from bankruptcy

Evers signs bipartisan sales tax bill aimed at sparing Milwaukee from bankruptcy

0
Lithium Universe LtdSpodumene Offtake Update

Lithium Universe LtdSpodumene Offtake Update

June 2, 2025
Cardiex Receives TGA Approval for CONNEQT Pulse Device

Cardiex Receives TGA Approval for CONNEQT Pulse Device

June 2, 2025
Ore Reserve Quadruples for Rhyolite Ridge Project; Reaffirms Robust Project Economics

Ore Reserve Quadruples for Rhyolite Ridge Project; Reaffirms Robust Project Economics

June 2, 2025
Blue Lagoon’s Dome Mountain Joins BC’s Select List of Permitted Projects

Blue Lagoon’s Dome Mountain Joins BC’s Select List of Permitted Projects

June 2, 2025
Enter Your Information Below To Receive Trading Ideas and Latest News

Error: Contact form not found.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Recent News

Lithium Universe LtdSpodumene Offtake Update

Lithium Universe LtdSpodumene Offtake Update

June 2, 2025
Cardiex Receives TGA Approval for CONNEQT Pulse Device

Cardiex Receives TGA Approval for CONNEQT Pulse Device

June 2, 2025
Ore Reserve Quadruples for Rhyolite Ridge Project; Reaffirms Robust Project Economics

Ore Reserve Quadruples for Rhyolite Ridge Project; Reaffirms Robust Project Economics

June 2, 2025
Blue Lagoon’s Dome Mountain Joins BC’s Select List of Permitted Projects

Blue Lagoon’s Dome Mountain Joins BC’s Select List of Permitted Projects

June 2, 2025
  • About us
  • Privacy Policy
  • Terms & Conditions
  • About us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 revenueagenda.com | All Rights Reserved

No Result
View All Result
  • Investing
  • Latest News
  • Editor’s Pick
  • Economy

Copyright © 2025 revenueagenda.com | All Rights Reserved