Demand for adjustable-rate mortgages surges, as interest rates make biggest jump in 13 years
Key Points
Mortgage applications to purchase a home rose 8% last week compared with the previous week, bolstered in part by demand for adjustable-rate mortgages, according to the Mortgage Bankers Association.
A big jump in mortgage rates may have actually spurred homebuyer demand, perhaps as consumers worried rates would move even higher.
“The average loan size, at just over $420,000, is well below its $460,000 peak earlier this year and is potentially a sign that home price-growth is moderating,” said Joel Kan, an economist for the MBA.
June 22, 2022 | CNBC Mortgage applications to purchase a home rose 8% last week compared with the previous week, bolstered in part by demand for adjustable-rate mortgages, according to the Mortgage Bankers Association’s seasonally adjusted index. Applications were, however, 10% lower than they were in the same week one year ago. Read more here.