The Federal Reserve plans on raising interest rates in 2022 which is putting borrowers looking to get a mortgage or refinance their current one on the clock.
Rates were on the rise in the past week as the 30-year fixed-rate mortgage increased to 3.52% from 3.33%.
"Mortgage rates increased significantly across all loan types last week as the Federal Reserve’s signaling of tighter policy ahead pushed U.S. Treasury yields higher," said Joel Kan, MBA’s associate vice president of economic and industry forecasting. "Rates at these levels are quickly closing the door on refinance opportunities for many borrowers". Conventional refinance applications were at their lowest level since January 2020.
Real estate agent Sales manager holding filing keys to customer after signing mortgage loan offer for and house insurance. Overall, applications for mortgages rose 1.4% from the prior week, according to the weekly survey from the Mortgage Banker's Association."MBA expects solid growth in purchase activity this year, as demographic drivers and the strong economy support housing demand," added Kan. "However, the strength in growth will be dependent on housing inventory growing more rapidly to meet demand.
The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.