Mortgage applications rose by 0.5 percent, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey released today.
The MBA’s weekly survey collects responses from mortgage bankers, commercial banks, and thrifts, covering over 75% of all retail residential mortgage applications in the US. The latest survey, for the week ending November 8, 2024, said the contract rate for a 30-year fixed mortgage increased by 5 basis points to 6.86% – marking the highest level since July. Over the past six weeks, the rate has risen by 72 basis points, the largest increase in two years.
The MBA’s latest press release stated: “Mortgage rates continued to increase last week, driven by higher Treasury yields as financial markets digested the likely impacts of a Trump presidency. The Federal Reserve’s 25-basis-point rate cut was already anticipated and did little to move the markets,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The 30-year fixed rate was at 6.86 percent last week, its highest since July 2024. However, despite the increase in rates, applications increased for the first time in seven weeks.”
Mortgage rates, along with Treasury yields, are rising due to strong economic data, which will likely keep the Federal Reserve cautious about interest rate cuts in the coming months. Upcoming data released later today is expected to show that US inflation remained stable in October.
Since Trump’s victory, borrowing costs have increased as investors anticipate higher inflation and budget deficits. The MBA’s refinancing index has dropped for the seventh week, the longest decline since April 2022, while home purchase applications have slightly increased.
By CEO NA Editorial Staff
