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Prices Over Rates? Mortgage Demand Rebounds

  • April 26th 2023

by UrbanTurf Staff

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Are dropping home prices offsetting high interest rates? Mortgage demand indicates that may be the case. 

Mortgage application volume to purchase a home rose 5% week-over-week, the Mortgage Bankers Association (MBA) reported on Wednesday. Demand increased even as interest rates rose. 

"Although incoming data points to a slowdown in the U.S. economy, markets continue to expect that the Fed will raise short-term rates at its next meeting, which have pushed Treasury yields somewhat higher," Joel Kan, MBA’s Vice President and Deputy Chief Economist, said in a release. "As a result of the higher yields, mortgage rates increased for the second straight week to their highest level in over a month, with the 30-year fixed rate now at 6.55 percent.”

It may be prices, not interest rates, bringing buyers back to the market. In their March report on the DC-area market, Bright MLS found that median prices had fallen in several local jurisdictions. 

See other articles related to: mortgage demand

This article originally published at https://dc.urbanturf.com/articles/blog/mortgage_demand_rebounds_rises_5_over_last_week/20950.

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