In the US, the 30-year fixed mortgage
rates have fallen for the fifth consecutive
week, reaching the lowest level in two
months, leading to an increase in demand
for home purchases. According to the
Mortgage Bankers Association's data, the
contract rate dropped 10 basis points to
6.3% in the week ending on April 7.
Furthermore, the group's index of
mortgage applications for purchasing a
home rose by 7.8%, which is the most
significant increase since mid-January.
The recent collapse of several banks has
caused investors to seek safety in
Treasury bonds, resulting in falling
mortgage rates. However, borrowing
costs are still high, and the housing
inventory is limited, which has restrained
homebuying activity.
Mortgage News Daily, which updates
more frequently, reported the 30-year
rate at 6.52% on Tuesday, as Treasury
yields climbed after the late last week data
revealed a resilient job market. Despite
this, the MBA's index of refinancing
applications increased by 0.1%, while the
overall gauge of mortgage applications
rose to the highest level since early
February.
The MBA survey, which has been
conducted weekly since 1990, utilizes
responses from mortgage bankers,
commercial banks, and thrifts, covering
over 75% of all retail residential mortgage
applications in the US.
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