Mortgage applications jumped 6.5 percent from a week ago, according to a weekly survey from the Mortgage Bankers Association (MBA), even as they remain well below their pace a year ago.
“Treasury yields declined late last week, as market concerns over bank closures and the potential for broader ripple effects triggered a flight to safety in Treasury bonds," said Joel Kan, vice president and deputy chief economist for MBA.
"While lower rates should buoy housing demand, the financial market volatility may cause buyers to pause their decisions," he added.
The average 30-year fixed-rate conforming mortgage dropped to 6.71 percent from 6.79 percent, inching back away from the 7 percent mark. The 30-year fixed jumbo mortgage rate also fell, to 6.39 percent from 6.49. Refinance activity, meanwhile, shot up 5 percent, though it remains 70 percent behind its level last year.
In other news from the housing market, home sellers gave concessions to buyers 45.5 percent of sales over the three-month period ending in February, according to Redfin.
“Any home with a roof that’s over eight years old is just sitting—buyers don’t want to put any additional funds into repairs. I had a few sellers offer credits for new roofs to close the deal. We’re also seeing more buyers ask for credits toward their closing costs.”
“Buyers today are way more demanding and selective," said Elena Fleck, a Redfin real estate agent in Palm Beach, Florida, in a press release. "They’re willing to wait to find the perfect house, which wasn’t the case during the pandemic homebuying boom.”
Updated March 15, 2023 at 4:20 p.m. ET to clarify the latest conforming and jumbo mortgage rates.
