The mortgage application numbers fell 6.6% last week due to rising mortgage interest rates. Potential home buyers are holding off applying for homes in an attempt to save money and get the best rate possible for a new home.
The number of applications was 3.5% higher this time last year.
Homeowners trying to refinance their homes have cautioned with the interest rate, with number of refinance applications falling 7%. This time last year, it was 2.8% higher. the refinance share dropped to 44% for total applications last week and was at 46% the week before. This is the lowest recorded since July 2017.
More homeowners are taking out home equity lines of credit than refinancing.
With the rising home market values, potential homebuyers are at risk for purchasing a home for over $500 more annually with the rising mortgage rates now than previously. Adjustable home rates are looking more attractive to potential homebuyers because of their lower interest rates, however the risk of a shorter payoff rate (15-year payoff) is a drawback.
-Allen A Garzone II, Garzone Real Estate, Inc, Boston Real Estate Agent