Home Borrowing, Applications, Refinance
April 07, 2021
Home borrowing costs inched higher in the latest week and remain at historically low levels. The MBA reports that the 30-year fixed-rate mortgage rose three basis points to 3.36% with 0.43 in points for the week ended April 2, 2021. The Market Composite Index, a measure of total mortgage loan application volume fell 5.1% while the Purchase Index declined by 4.6%. The Refinance Index fell 5.3% and is down 20% from a year ago. Spokesperson Joel Kan said, “The rapidly recovering economy and improving job market is generating sizeable home buying demand, but activity in recent weeks is constrained by quicker home-price growth and extremely low inventory.”
Freddie Mac recently reported that the 30-yr fixed-rate mortgage has risen to 3.18% in the latest survey from 2.65% in early January. Due to the increase in rates, Black Knight reports that there are 11.1 million “high quality” refinance candidates, the smallest number in a year. Black Knight also reports that home prices were up 11.6% annually in February, the highest annual rate in more than 15 years. New listing volumes fell 16% and 21% year-over-year in January and February, respectively.
