Total mortgage volume declined nearly 8% this week, while refi applications were off 76% year-over-year with higher mortgage rates. Still, housing demand appears strong ahead of the spring season, with many cash buyers in the market.
Coupled with strong retail sales and supply chain concerns, persistent inflation would trigger further rate increases to tame the market.
“Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time,”
Joel Kan, MBA Vice President and Deputy Chief Economist.
“Applications to refinance a home loan dropped 13% for the week and were 76% lower than the same week one year ago. Mortgage applications to purchase a home fell 6% for the week and were 43% lower than the same week a year ago. Real estate agents across the country are reporting a jump in buyer demand in the past few weeks, perhaps indicating an early start to the historically busy spring market.”