Quintessential Mortgage Group, LLC
NMLS # 979266

Weekly mortgage demand Increased by 7% as interest rates dropped to lowest level since September 2022

January 25, 2023

Mortgage interest rates decreased for the third consecutive week, while mortgage demand once again rose. Last week, the Mortgage Bankers Association’s seasonally adjusted index showed that total application volume had increased by 7% compared to the previous week. In addition, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances (of $726,200 or less) decreased to 6.2% from 6.23%, with the points (including the origination fee) increasing to 0.69 from 0.67 for loans with a 20% down payment. This rate was approximately half of the rate one year ago. Notably, applications to refinance a home loan saw the most significant growth, up 15% from the previous week. While this is still 77% lower than the same week a year ago, this annual decline is quickly shrinking.

Mortgage applications for home purchases increased by 3% for the week but were still 39% lower than the same time last year. Although house prices have decreased slightly, there is still not much to choose from due to the low inventory. Mortgage rates have increased slightly this week, but remain within the lower range, leading to more buyer interest according to Redfin. Despite this uptick, the housing market continues to be stagnant, with potential sellers and buyers waiting to see where prices settle.

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