Mortgage Demand Slips As Buyers Wait Out High Prices And Turn To ARMs For Lower Borrowing Costs

Benzinga

U.S. mortgage applications fell 4.7% for the week despite slightly lower rates. Refinancing dropped 8%, while purchase demand stayed weak as high prices and uncertainty keep buyers and sellers cautious.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02U.S. mortgage demand fell for a second straight week despite a slight drop in interest rates,

00:06the Mortgage Bankers Association reported on Wednesday. Total mortgage applications

00:10declined 4.7% from the prior week, while refinancing applications dropped 8%,

00:15but they remained 18% higher year-over-year. Purchase applications slipped 1% but were

00:19still up 14% from last year, while the average 30-year fixed mortgage rate dipped at 6.43%

00:24from 6.46%. Adjustable rate mortgages gained popularity, rising to 9.5% of total applications

00:31as borrowers sought lower initial rates. Home buying demand has remained stagnant as high

00:36prices and economic uncertainty lead more sellers to delay or withdraw listings despite higher

00:41overall supply. For all things money, visit Benzinga.com.

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