Mortgage demand from homebuyers pulls back, after four weeks of gains
On August 28, 2025, a ‘for sale’ sign was published next to the property offered for sale in California, Alhambra.
Frederic J. Brown | AFP | Getty Images
Mortgage rates fell again last week, but it is not enough to remove the general demand from the rut for last month. According to the seasonal -free index of the Mortgage Banning Association, the total mortgage application volume fell 1.2% last week.
The average contract interest rate for 30 -year fixed mortgages with appropriate credit balances fell from $ 806,500 or less, from 6.69% to 6.64% and points to 20% down payment to 0.59%. It was the lowest ratio since April.
Applications to re -finance a home loan, which was the most sensitive to weekly rate changes, increased by 1% for the week and was 20% higher than the same week a year ago. This is currently 21 basis points lower than the mortgage ratios at the moment.
Applications fell 3% during the week to buy a mortgage house and 17% higher than the same week a year ago. Today, potential buyers have much more than the time you can choose, but prices are at least higher than the national level. Purchaseability is the main obstacle that stands in front of stronger sales.
“Refinance practices have seen a small increase from the previous week, which was directed by FHA and VA Refinance applications, but traditional refinances have decreased. The ratio of FHA is about 30 basis than the traditional ratio of 2025, which makes these loans relatively more attractive for appropriate borrowers.” He said. “After a four -week increase, the purchasing activity was withdrawn.
Mortgage rates started much higher this week after a sale in the European bond market. However, there are several important economic reports that can move mortgage rates more significantly in both directions, including a very important monthly employment report on Friday this week.
