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Economy — Business

Mortgage Rates Ease But Housing Market Remains Weak

Total mortgage application volume fell 3.8% from the previous week. The average rate for a 30-year fixed mortgage remained at 6.60%, while refinancing applications declined 5%

,   and  TIPP Staff
2 min read
Photo by Maria Ziegler / Unsplash

Mortgage demand weakened last week despite a modest improvement in borrowing costs, according to data from the Mortgage Bankers Association.

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The report said total mortgage application volume fell 3.8% from the previous week. The average rate for a 30-year fixed mortgage remained at 6.60%, while refinancing applications declined 5%. Applications for home purchases also dropped 3%.

According to MBA chief economist Mike Fratantoni, rising inflation data pushed rates higher earlier in the week. However, optimism surrounding the potential reopening of the Strait of Hormuz later helped ease rate pressures.

Even with lower rates, homebuyers continue to face challenges including limited housing inventory, elevated home prices and uncertainty about inflation and the broader economy.

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Mortgage News Daily reported that rates have continued to edge lower and are now at their lowest level since mid-May. Analysts cautioned that further declines could depend on whether easing tensions in the Middle East lead to sustained drops in oil prices.

Investors are also watching the Federal Reserve's first meeting under Chairman Kevin Warsh for signals about future monetary policy.

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