2 Minutes Read FILE PHOTO: New homes for sale are advertised in numerous new developments in York County, South Carolina, United States, on February 29, 2020. REUTERS/File Photo/Lucas Jackson (Source: Reuters) Last week, the number of house mortgage applications fell to its lowest level since early 2020, owing to a drop in refinancing and buy applications. The Mortgage Bankers Association (MBA) reported on Wednesday that its seasonally adjusted market index decreased 1.8 percent from a week earlier in the week ending July 2, bringing it to its lowest level since January 2020. This was due to a 2.3 percent dip in applications to refinance existing loans and a 1.1 percent drop in home purchase applications. Last week, the average contract interest rate on typical 30-year mortgages fell to 3.15 percent from 3.20 percent the week before. In a statement, MBA’s assistant vice president of economic and industry forecasts Joel Kan stated, “The 30-year fixed rate was 11 basis points lower than the same week a year ago, but many borrowers previously refinanced at considerably lower rates.” “For the past four months, refinance applications have been trending lower than 2020 levels.” The housing market has been weighed down by rising property prices and a lack of supply. Evan Sully contributed reporting, and Sandra Maler edited the piece./n
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