In the US, the average mortgage size for home purchases reached a two-month high, settling at $433,400, UNN reports with reference to CNBC.
Details
At the same time, for the second consecutive week, demand for mortgage loans has remained almost unchanged, as interest rates also remain stable.
Overall mortgage application volume in the US last week decreased by 0.5% compared to the previous week, according to the Mortgage Bankers Association's (MBA) seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased from 6.68% to 6.69%, with the points remaining unchanged at 0.60, including the origination fee, for loans with an 80% loan-to-value (LTV) ratio.
The number of mortgage refinancing applications decreased by 4% for the week and was 19% higher than a year ago. The share of mortgage refinances decreased to 45.3% of total applications from 46.1% the previous week.
The number of mortgage applications for home purchases increased by 2% for the week and by 25% compared to the same week a year ago. This small increase made this week the leader in home purchase demand for the month, although this is not much, given the very low level. The average loan size for home purchases increased to $433,400, reaching a two-month high. This reflects rising home prices.
US housing prices hit new record despite signs of easing13.08.25, 10:19 • [views_5050]
"Prospective buyers appear to be less sensitive to rates at this level and more active, aided by increasing supply and slowing home price growth in many parts of the country," said Joel Kan, MBA economist.
Mortgage rates also remained unchanged earlier this week, despite the news of US President Donald Trump's dismissal of Federal Reserve Board Governor Lisa Cook. It is implied that Cook's successor, if any, will support a more aggressive reduction in interest rates, the publication writes.