September 30, 2021: -Higher interest rates took some latest wind out of the sails in the mortgage market.
According to the Mortgage Bankers Association’s seasonally adjusted index after gains, total mortgage application volume decreased 1.1% last week from the previous week.
The contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of nearly $548,250 increased to 3.10% from 3.03%. Points, including the origination fee, increased to 0.34 from 0.30 for loans with a down payment of 20%.
“Increased optimism about the strength of the economy pushed Treasury yields higher following previous week’s FOMC meeting. Mortgage rates in response rose across all loan types, with the benchmark 30-year fixed-rate hitting its highest level since July 2021,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
Applications to refinance a home loan are very sensitive to weekly rate movements, decreasing 1% from last week and were essentially flat from almost a year ago. The surge in interest rates occurred late in the week and continued into this week, which suggests the negative effect on refinancing demand will be more severe in the coming week’s report.
Mortgage applications to purchase a home decreased 1% last week and were 12% lower than before a year. The weakness in purchase demand is minor about rising interest rates, which are still historically low, and about sky-high home prices.
Prices nationally surged 19.7% year over year in July, up from an 18.7% annual increase in June, according to the latest S&P CoreLogic Case-Shiller Home Price Index. That’s another record increase.
“With home-price appreciation continuing to run hot, which increases over 19 percent in July, applications for larger loan amounts continue to outpace lower-balance loans. The loan size for a purchase application is $410,000, its highest level since May 2021,” Kan said.
Price gains are expected to start soon cooling slightly, simply because sales have dropped and more supply is coming on the market. Higher mortgage rates will also take some fuel out of rising prices since potential buyers would face higher monthly payments.
The old prestige pyramid—where Ivy League degrees and blue-chip consulting backgrounds paved the way to the CEO seat—is cracking.
Loud leaders once ruled the boardroom. Charisma was currency. Big talk drove big valuations.
But the CEOs who make history in downturns aren’t the ones with the deepest cuts
Companies invest millions in leadership development, yet many of their best executives leave within a few years. Why?
The most successful business leaders don’t just identify gaps in the market; they anticipate future needs before anyone else.
With technological advancements, shifting consumer expectations, and global interconnectedness, the role of business leaders
May 28, 2025: SpaceX’s latest Starship test flight, conducted on May 27, 2025, ended in failure when the spacecraft’s upper stage broke apart during its descent over the Indian Ocean.
May 27, 2025: Greek Coastguards Charged Over 2023 Pylos Migrant Shipwreck That Killed Hundreds
May 27, 2025: Volvo to Cut 3,000 Jobs in Europe as Part of $1.9B Restructuring Amid EV Slowdown and Tariff Pressures.
The old prestige pyramid—where Ivy League degrees and blue-chip consulting backgrounds paved the way to the CEO seat—is cracking.
Leave us a message
Subscribe
Fill the form our team will contact you
Advertise with us
Fill the form our team will contact you
