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Mortgage Rates Stay Tantalizingly Low As Buyers Compete For Homes

Demand For Mortgages Lowest Since Before The Pandemic

Inman Connect Demand for mortgages dropped during the last week of May to levels not seen since before the pandemic, according to the latest data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. After adjusting for seasonal patterns, requests for purchase loans were down 3 percent from the week before, and 2 percent from a year ago (the week of Memorial Day 2020). Demand for refinancing was down 5 percent from the week before, but 6 percent higher than a year ago. Joel Kan “Mortgage applications decreased for the second week in a row, with the overall index reaching its lowest level since February 2020,” the MBA’s Joel Kan said in a statement. “Tight housing inventory, obstacles to a faster rate of new construction, and rapidly rising home prices continue to hold back purchase activity.”

Mortgage Lending Standards Ease For Refinances

Mortgage lenders continued to ease underwriting standards in April, but only for borrowers who were refinancing. For both homebuyers and homeowners seeking to refinance, credit still remains tighter than before the pandemic, which helped pushed average FICO scores on closed loans up by nearly 20 points last year. Inman Connect Mortgage lenders continued to ease underwriting standards in April, but only for borrowers who were refinancing. For both homebuyers and homeowners seeking to refinance, credit remains tighter than before the pandemic, which helped pushed average FICO scores on closed loans up by nearly 20 points last year. That’s according to ICE Mortgage Technology’s latest Origination Insight Report, which shows the average FICO score on closed mortgage loans dropped for the second month in a row during April, falling to 747. The four-point drop in average FICO scores from March to April was the biggest monthly easing in mortgage credit recorded by the ICE report sinc

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