{"id":4659,"date":"2023-10-04T12:01:41","date_gmt":"2023-10-04T12:01:41","guid":{"rendered":"https:\/\/frankbuysphilly.com\/mortgage-applications-slump-after-rates-surge-to-23-year-high\/"},"modified":"2023-10-04T12:01:41","modified_gmt":"2023-10-04T12:01:41","slug":"mortgage-applications-slump-after-rates-surge-to-23-year-high","status":"publish","type":"post","link":"https:\/\/frankbuysphilly.com\/mortgage-applications-slump-after-rates-surge-to-23-year-high\/","title":{"rendered":"Mortgage applications slump after rates surge to 23-year high"},"content":{"rendered":"
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Mortgage applications<\/a> ground to a halt for the week ending Sept. 29, falling 6% from the week prior as mortgage rates jumped to a 23-year high of 7.53%, according to new weekly data from the Mortgage Bankers Association<\/strong><\/a>. <\/p>\n Mortgage application activity is now at its lowest level since 1996, the MBA reported.<\/p>\n Purchase mortgage application volume, in particular, slowed considerably for the week ending Sept. 29, down 22% from a year ago, according to unadjusted data. Meanwhile, refinance<\/a> applications slumped 7% from the previous week and were 11% lower than the same time a year ago.<\/p>\n “The purchase market slowed to the lowest level of activity since 1995, as the Bucking the downward trend, the share of adjustable-rate mortgage (ARM) applications rose to 8% of all loan applications, the MBA found. Kan attributed the uptick in ARM demand to homebuyers looking for ways to lower their mortgage payments amid rate increases.<\/p>\n Still, mortgage rates<\/a> for home loan products across the board, including ARMs, pushed higher for the week ending Sept. 29. The average contract interest rate for 5\/1 ARMs hit 6.49%, up slightly from 6.47% a week prior, the MBA reported.<\/p>\n Meanwhile, the refinance share of mortgage activity decreased to 31.7% of total applications from 31.9% the previous week.\u00a0<\/p>\n The share of Federal Housing Administration<\/strong><\/a> (FHA)<\/strong> loan activity inched up to 14.5% from 14.1% for the week ending Sept. 29. Meanwhile, the share of Department of Veterans Affairs<\/strong><\/a> (VA) <\/strong>loan activity of total mortgage applications was 10.1%, down from 10.9% the week prior. The Department of Agriculture (USDA) <\/strong>loan share of activity remained unchanged at 0.5%.<\/p>\n
rapid rise in rates pushed an increasing number of potential homebuyers out of the market,” Joel Kan, MBA\u2019s vice president and deputy chief economist, said in a news release.<\/p>\n