After reports of great housing prices for home buyers in the pandemic, a mortgage rate stall this month has caused borrowers to pull back a bit. Even though mortgage rates are approaching historic lows, borrowers are choosing to find ways to lower their mortgage payments — especially by refinancing, causing demand to fall 4% over the last week, according to a report on the Mortgage Bankers Association Index by CNBC.
Although the volume of home refinance applications registered 30% higher than a year ago, that annual comparison has been shrinking over the past few months. Mortgage applications fell 1% last week — though compared to last year, they’re up 6%. That annual comparison is the smallest since mid-May, falling from gains in the 20% range over the past few weeks, according to the CNBC report.
“It’s not that they [lenders] don’t want to drop rates. It’s that they don’t have the capacity to fulfill that mortgage request right now, on the refis [refinance applications] especially,” Jeff Taylor, managing partner at Digital Risk, a Florida-based financial mortgage analytics company, told Yahoo Finance’s The Final Round. Once lenders catch up, mortgage rates are likely to decline again.
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