Lower weekly mortgage demand hints at a possible pullback by first-time homebuyers

  • Mortgage applications to purchase a home were 2% lower last week than the previous week but a strong 21% higher annually.
  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances remained unchanged at 3.20%.
  • However, the average rate for FHA-backed 30-year fixed-rate mortgages jumped to 3.27% from 3.13%.

With mortgage interest rates hovering near a record low, mortgage demand, especially from homebuyers, is now significantly higher than a year ago, but there are warning signs that first-time buyers may be struggling to stay in the market. 

Total mortgage application volume fell 0.8% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. 

Diana Olick | CNBC

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