United States Mortgage Demand Rises Ahead of Fed Decision on Rates
Though mortgage rates may have risen to their highest levels in four weeks, homebuying and refinance demand rose. This rise in applications comes ahead of a U.S. Federal Reserve decision on interest rates. This demand for refinancing and purchasing applications pushed the market-composite index (a measure of mortgage application volume) up.
According to Realtor.com, some buyers waded back into the market. The purchase index—which measures mortgage applications for the purchase of a home—rose 2.3% from last week.
On the other hand, a number of homeowners saw an opportunity to refinance. The refinance index rose 13.2%.
The average contract rate for the 30-year mortgage for homes sold for $726,200 or less was 7.31% for the week ending September 15. That’s up from 7.27% the week before, the MBA said.
The rate for jumbo loans, or the 30-year mortgage for homes sold for over $726,200, was 7.32%, up from 7.25% the previous week.
