Mortgage applications slipped as the initial shock of falling rates wore off and buyers once again approached the market carefully.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell 1.5%, coming down from the week prior’s 7.4% boost.
Adjusted purchase applications dropped by 1%, while the unadjusted index fell 4% from the week before and was 18% lower YOY.
Americans appear to be losing interest in falling rates, which initially sparked some activity in the market. The 30-year fixed fell to its lowest level since June last week and hit 6.83%.
“At least as of last week, borrowers’ response to this rate move was rather tepid. VA…
Housing starts surged unexpectedly in November, rising to a 6-month high.
New home construction increased by 14.8% last month to an annualized rate of 1.56 million, according to data from the U.S. Census Bureau. All regions saw increases, with the South experiencing a 16.3% boost while new construction doubled in the Northeast.
Single-family starts soared by 18.0% to a seasonally adjusted annual rate of 1.143 million, their highest level since April 2022.
Permit applications slipped 2.5%, however, to a seasonally adjusted annual rate of 1.46 million. Permits offer an indication of future construction.
Notably, the decline was driven by multi-family construction only. Permits for single-family residences actually rose to their highest level since May 2022.
The data offers good news…
By KIMBERLEY HAAS
As consumers turn to mortgage professionals they can trust in their communities, it is predicted that more industry leaders will depend on a retail model to make the most out of the market.
Joe Ludlow, vice president of sales at Advantage Systems, Accounting for Mortgage Bankers, and ApprovalSoft in California, made note of the potential trend during a recent interview with The Mortgage Note.
Ludlow said since it is getting harder for potential homebuyers to get approved for a loan, they are seeking out a local professional to help with the process. As a result, bank branches and loan officers with a desk there are popular again.
“Branches now are becoming more important. Loan officers are becoming…
Cooling interest rates have opened a path for potential buyers heading into 2024, sparking “cautious optimism” for housing professionals.
First American’s Potential Home Sales Model for November 2023 saw its biggest monthly increase since December 2022, up 1.3%. That translates to 5.30 million potential existing home sales at a seasonally adjusted annualized rate.
The Potential Home Sales Model measures what the healthy level of home sales should be based on economic, demographic, and housing market fundamentals.
First American Chief Economist Mark Fleming says mortgage rate declines in November fueled the data.
Mortgage rates dipped below 7% for the first time since August last week after the Federal Reserve set the stage for rate cuts in the coming year. That decline,…
Mortgage rates dipped below 7% for the first time since August after the Federal Reserve set the stage for rate cuts in the coming year.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.95%, down from the week prior’s 7.03%. A year ago at this time, the 30-year FRM averaged 6.31%.
It is now down nearly 90 bps in the last six weeks. This lowers the monthly mortgage payment for a $400,000 house to $2,118, down $183 from recent peaks.
The 15-year fixed rate, on the other hand, rose to 6.38%% from 6.29%. A year ago, it averaged 5.54%.
“Potential homebuyers received welcome news this week,” said Sam Khater, Freddie Mac’s Chief Economist.
“Given inflation continues…
As 2023 draws to a close, good news for homebuyers keeps rolling in, suggesting change might be just around the corner.
New listings are on the rise and purchase applications are beginning to rebound, a new report from Redfin found.
Purchase applications are up nearly 20% from a low point in November. This is thanks to a combination of cooling mortgage rates and surprise inventory upticks. Daily rates have fallen to as low as 6.82% in recent days, the first time they’ve come in below 7% since July.
And even better rate news may be on the way as well. The FOMC decided not to raise the federal funds rate at its December meeting and even suggested that cuts may…
Refinance applications drove a spike in mortgage applications last week as rates slipped to nearly 7%.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – saw a 7.4% boost, up from the week prior’s 2.8% increase.
Adjusted purchase applications jumped by 4%, while the unadjusted index fell 1% from the week before and was 18% lower YOY.
The data highlights borrowers’ rate sensitivity, as the 30-year fixed rate slipped to 7.07%, its lowest point since July.
A recent round of positive disinflation data put downward pressure on rates. Analysts feel more optimistic about the possibility of Federal monetary policy changes in 2024.
“Borrowers who had seen rates near…
Mortgage costs cooled in November, cutting some homeowners loose from rate lock-in and easing inventory shortages that helped stall the housing market.
That’s according to Zillow’s latest market report, which found that the new listing deficit shrank to 14.1% below normal, a massive improvement over April’s record low of -35%.
New listings were still down 20.5% month-over-month in November and overall inventory remains down 37.2%, but the numbers still suggest positive movement.
Zillow attributes the data to declining mortgage rates, which may be encouraging homeowners clinging to super-low rates from the pandemic era to finally consider moving. About 70% of sellers are also buying.
The Midwest, the Great Lakes region, and the South are experiencing the smallest new listing declines.…
This year was one of the worst on record for affordability. But with the market at an all-time low, the only move now is up, according to a new analysis by Redfin.
A homebuyer with the median U.S. income needed to spend 41% of their earnings on monthly home costs in 2023, a record high in Redfin’s data (dating to 2012) and fully 10% more than just two years ago.
In some hot markets, like California’s Anaheim and San Francisco, that number jumps to more than 80%.
But Redfin expects mortgage rates and home prices to both cool in 2024, paving the way for more Americans to buy their dream home.
“A perfect storm of inflation, high prices, soaring mortgage…
The 30-year fixed rate mortgage fell nearly 20 bps in one week, almost hitting 7%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.03%, down from the week prior’s 7.22%. A year ago at this time, the 30-year FRM averaged 6.33%.
It is now down nearly 80 bps in the last six weeks.
The 15-year fixed rate fell to 6.29%% from 6.56%. A year ago, it averaged 5.67%.
Mortgage applications overall increased by nearly 3% last week as refinances saw their biggest gains in two months thanks to cooling rates.
But purchase demand reversed course, slipping slightly.
“When rates began to rapidly drop, purchase applications rebounded initially, but this improvement in demand diminished in the last…
