Home purchase demand has pushed mortgage applications up 9%, expert says
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Mortgage rates have inched up for the week ending Sept. 12, according to the Freddie Mac Primary Mortgage Market Survey.
The 30-year fixed-rate mortgage rose to 3.56% with an average 0.5 point. Despite the increase, it’s the first time 30-year FRM rates have been under 3.6% for four weeks in a row since Q4 2016. The 30-year FRM averaged 3.49% the prior week and 4.6% a year ago.
The 15-year FRM also edged up to 3.09% with an average 0.5 point, up from last week’s 3%. Last year, the 15-year FRM was 4.06%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) climbed to 3.36% with an average 0.3 point from 3.3%. A year ago at this time, the five-year ARM was 3.93%.
Even with the shortage in housing supply, Freddie Mac Chief Economist Sam Khater said that homebuyers remained undeterred, fueling purchase demand.
“Pipeline purchase demand continues to improve heading into the late fall with purchase mortgage applications up 9% from a year ago,” he said. “The improved demand reflects the still-healthy underlying consumer economic fundamentals such as a low unemployment rate, solid wage growth and low mortgage rates. While there has been a material weakness in manufacturing and consistent trade uncertainty, so far, the American consumer has proved to be resilient, with solid home-purchase demand.”
