Refinance Demand Low as Rates Stay High

  • U.S. mortgage applications inch up as buyers return to the market
  • Purchase index rises 7.5% from the previous week
  • Refinance index falls 7% as homeowners see little incentive
  • Average contract rate for 30-year mortgage increases to 6.78%
  • Mortgage rates bouncing around, but home-buying interest is increasing

U.S. mortgage applications have seen a slight increase as buyers start to reenter the market. The overall market composite index rose 3.7% in the last week, with the purchase index increasing by 7.5%. However, the refinance index fell by 7% as homeowners saw little incentive to do so. The average contract rate for a 30-year mortgage also increased to 6.78%. While mortgage rates are fluctuating, the trend indicates a growing interest in home-buying. However, with low inventory levels, applications and sales are expected to remain subdued. Refinancing remains unattractive for many homeowners who already have lower mortgage rates. Overall, the market is showing signs of recovery as buyers take advantage of early opportunities this season.

Public Companies: Mortgage Bankers Association (MBA)
Private Companies:
Key People: Joel Kan (Vice President and Deputy Chief Economist at the MBA)

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Factuality Level: 7
Justification: The article provides specific data and quotes from the Mortgage Bankers Association to support its claims about the increase in mortgage applications. However, it does not provide any counterarguments or alternative perspectives, which could potentially limit the overall factuality of the article.

Noise Level: 3
Justification: The article provides relevant information about the increase in U.S. mortgage applications and the rise in mortgage rates. It includes specific data and quotes from the Mortgage Bankers Association. However, it lacks in-depth analysis and does not provide actionable insights or explore the consequences of these trends.

Financial Relevance: Yes
Financial Markets Impacted: Mortgage market

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the increase in U.S. mortgage applications, indicating the financial relevance to the mortgage market. There is no mention of any extreme events or their impact.

Reported publicly: www.marketwatch.com