by 2 minutes ReadFILE PHOTO: On May 14, 2021, a “For Sale” sign is displayed outside a residential residence in Seattle, Washington, United States. Karen Ducey/Reuters/Karen Ducey/Reuters/Karen Ducey/Reuters/Karen Ducey/Reuters/Karen Applications for house mortgages in the United States fell to their lowest level in over five months, owing to substantial drops in refinancing and purchase applications. The Mortgage Bankers Association (MBA) said on Wednesday that its seasonally adjusted market index declined 6.9% from a week earlier in the week ending June 25, the greatest loss since early February. This was due to an 8.2% drop in applications for refinancing existing loans and a 4.8 percent dip in applications for house purchases. Traditional 30-year mortgages had an average contract interest rate of 3.20 percent last week, up from 3.18 percent the week before. “Purchase applications for conventional loans fell to their lowest level since May last week,” MBA Senior Vice President and Chief Economist Mike Fratantoni said in a statement. “The average loan size for total purchase applications climbed, indicating that first-time homebuyers, who normally receive smaller loans, are likely being priced out of the market due to a scarcity of entry-level properties for sale.” Due to a shortage of homes on the market, both new and existing home sales have dropped dramatically this year. Evan Sully contributed reporting, and Dan Burns edited the piece. Continue reading
