Mortgage Demand Dips as Fewer Seek Refinancing

Demand for mortgages slipped for a 2nd week arsenic homebuyers shied distant from precocious borrowing costs.

The measurement of owe applications decreased by 3.9% for nan week ending July 26, according to information from nan Mortgage Bankers Association (MBA). Refinancing decreased by 7% from nan anterior week while purchases were 2% lower.

Mortgage rates were unchanged astatine 6.82%, nan MBA said. Unmoving borrowing rates discouraged refinancing activity which had been elevated in caller weeks, pinch Veterans Administration refinancing loans posting a crisp drop, said Mike Fratantoni, MBA elder vice president and main economist.

“Borrowers whitethorn beryllium waiting for signs that owe rates will drift little arsenic nan Federal Reserve originates to trim short-term rates,” Fratantoni said. “Purchase measurement besides dropped somewhat because of ongoing affordability challenges.”