Geopolitical uncertainty is roiling the housing market, affecting rates and demand in different ways.
Financial market volatility pushed the average 30-year fixed rate mortgage down to 6.84%, according to the Mortgage Bankers Association. The 9 basis point drop represented the lowest 30-year FRM since April, as rates have
Borrowers however didn't bite on the lower rates, as the trade group's Market Composite Index found overall application volume falling 2.6% from the week prior. Joel Kan, the MBA's vice president and deputy chief economist, said
Easing rates also came on the eve of the
Refinance applications made up just over a third of all activity, and fell 2% from the week prior. Purchase application volume also declined 3%, and on an unadjusted basis is just 14% higher than the same time last year.
"Refinance activity declined for both conventional and government borrowers," said Kan in a press release. "[Department of Veterans Affairs] applications, however, bucked the trend with a 2% increase in purchase applications and a slight increase in refinance applications."
The MBA also found the average loan size for all mortgage applications last week at $380,200, the lowest amount since January.
Buyers in recent weeks have drifted toward government-backed loans, although the share of Federal Housing Administration-insured mortgages recently fell slightly to 17.8%. The average 30-year FHA rate ticked down to 6.57%, from 6.6% the prior stretch.
VA loans saw a mild bump up to 12.1% of all applications, from 11.6% last week. The pace of homebuyers opting for U.S. Department of Agriculture loans meanwhile were steady at 0.6%.
The effective rate for mortgage products tracked by the MBA fell across the board, with average 30-year jumbo rates dropping 12 basis points to 6.81% last week. Interest rates for the 15-year product were nearly flat at 6.14%.
Adjustable rate mortgages made up 7.1% of all applications in the past seven days, and those applicants enjoyed average rates falling 12 basis points to 6.10%.
