Rates Hit 9-Month High, Loan Demand Falls

Every day Real Estate News | Wednesday, July 01, 2015

With interest rates coming to a nine-month high a week ago, contract applications took a dive after consumers discovered fewer savings.

General home loan applications — reflecting both refinancings and home buys — dropped 4.7 percent week-over-week on a seasonally adjusted basis for the week finishing June 2, as indicated by the Mortgage Bankers Association reports. They are currently at their lowest level following Jan. 2.

In the meantime, the normal 30-year fixed rate home loan increased to 4.26 percent a week ago, the most highest average since October 2014, MBA notes.

"Rates floated up further a week ago because of a stronger U.S. economic report, even with the worries about a potential default of Greek debt this week," MBA Chief Economist Michael Fratantoni says.,"

Broken out, refinance applications dropped 5 percent week-to-week, coming to the lowest level since December of a year ago. Mortgage applications for home buys diminished 4 percent for the week. Be that as it may, applications for home purchases  remain 14 percent higher  same week one year ago.