Last week, homebuyers were hitting the brakes on getting mortgages. Even though mortgage rates didn’t change much, people are nervous about the economy, and it’s showing.
Fewer People Applying for Mortgages
According to the Mortgage Bankers Association, applications to buy a home dropped by 4% last week compared to the week before.
Even though rates were higher this time last year, the number of applications is only slightly better now, up just 3% from a year ago.
What’s Up with Mortgage Rates?
The average rate for a 30-year fixed mortgage (if you’re borrowing $806,500 or less) went down a tiny bit—from 6.90% to 6.89%.
Not a huge change, right? But here’s the catch: the points you pay upfront (fees to get a lower rate) went up slightly, from 0.66 to 0.67.
For those putting 20% down, that’s still 40 points lower than last year.
Why Are Homebuyers Holding Back?
Joel Kan, an expert at the MBA, says people aren’t rushing to buy because they’re worried about the economy and jobs.
Plus, fewer people are applying for mortgages now than in February.
However, there’s some good news for first-time homebuyers. As more homes hit the market, government-backed loans like FHA mortgages are still holding steady.
Refinancing? Not So Fast
If you’re thinking about refinancing your home loan, you’re not alone—but many people are waiting for rates to drop even more.
Refinancing applications also fell by 4% last week.
Even though refinance numbers are up 42% compared to last year, the average loan size dropped to just under $290,000, the lowest in three months.
What’s Next?
Mortgage rates haven’t moved much lately, but that could change soon.
Big economic updates are coming this week, and the monthly jobs report on Friday could really shake things up.
So, if you’re in the market for a mortgage or just curious about what’s happening, keep an eye on those rates—they might surprise us soon!