The surge in mortgage rates has had a negative impact on mortgage demand, resulting in a decline in total mortgage application volume.
The average contract interest rate for 30-year fixed-rate mortgages has increased to its highest level since July of this year. This increase in rates has particularly affected the refinancing market, leading to a significant drop in applications.
However, applications for mortgages to purchase homes have seen an increase, reflecting a rise in the supply of homes available for sale. This indicates that despite the higher interest rates, there is still demand for purchasing homes.
The current landscape of the mortgage market is characterized by rising interest rates and shifting buyer sentiment. Economic indicators, such as the upcoming jobs report and the outcome of the election, will play a crucial role in shaping future trends.
Stakeholders across the financial landscape will need to remain vigilant and adapt to these changing dynamics in order to navigate the market successfully.