Mortgage Rates Drop Prompts Buyer Demand

Steven Huang  |  February 3, 2023

Housing News

Mortgage Rates Drop Prompts Buyer Demand

If you're a homebuyer, you're in luck! Mortgage Rates fell for three consecutive weeks, according to Freddie Mac, with a national average of 6.09% for 30-year fixed loans. In comparison, the rates for this mortgage type peaked last November at 7.08%. This downward trend has already triggered a 7% jump in mortgage loan applicants as of January 20, per Mortgage Bankers Association (MBA), and we can expect this increased buyer demand to continue, at least for now. With the Federal Reserve's raise of just a quarter point on February 1, mortgage rates are expected to fall further. 

MBA data breaks down the demand by loan type, with FHA share of total applications decreased to 11.9% from 13.0% the week prior as of late January. The VA share of total applications increased to 13.0% from 11.8% the week prior. 30-year fixed conforming loan rates decreased to 6.20% from 6.23%, with points increasing from 0.69 from 0.67. Similarly, higher-priced jumbo loan rates dropped to 5.92% from 6.08%, with points increasing to 0.41 from 0.40. This indicates that more borrowers are buying down interest rates.

If you're looking to buy a home or refinance, please contact us for lender recommendations. We can recommend to you bank loan officers, mortgage brokers and private lenders with a variety of unique loan products and tell you what questions to ask them so you can find the best loan for your situation.

 


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