Mortgage Applications Slip In Last Two Weeks Of 2023

The last two weeks of 2023 brought a slump in mortgage applications as buyers continue to grapple with affordability. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell 9.4% from the two weeks prior. The data includes adjustments for the holidays. Adjusted purchase applications dropped by 5%, while the unadjusted index fell 34% and was 12% lower YOY. Americans appear to be losing interest in falling rates, which initially sparked some activity in the market. The 30-year fixed ended the year at 6.76%, ticking up very slightly from the week prior but still down more than a full point from its October peak. MBA Vice President and…

May Slump: Mortgage Applications Down Again

Mortgage applications fell again last week as borrowers recoil in the face of rising rates. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 4.6%, adding to last week’s drag. Adjusted purchase applications fell by 4%, while the unadjusted index was down 5% from the week before and 30% lower YOY. The average interest rate for 30-year fixed loans rose from 6.57% to 6.69%, the highest level since March. “Since rates have been so volatile and for-sale inventory still scarce, we have yet to see sustained growth in purchase applications. Refinance activity remains limited, with the refinance index falling to its lowest level in two months…

Rates Reverse Course

After falling slightly the week before, mortgage rates shot right back up last week, continuing to fluctuate within the 6% range. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.39%, up from 6.35% the week prior. A year ago at this time, the 30-year FRM averaged 5.25%. The 15-year fixed-rate mortgage remained unchanged at 5.75%. A year ago, it averaged 4.43%. “The 30-year fixed-rate mortgage averaged 6.39% this week, as economic crosscurrents have kept rates within a ten-basis point range over the last several weeks,” said Sam Khater, Freddie Mac’s Chief Economist.  “After the substantial slowdown in growth last fall, home prices stabilized during the winter and began to modestly rise over the last few months.…

Rates Down Slightly, Fluctuating Within 6% Range

Mortgage rates dipped again last week, continuing to fluctuate within the 6% range. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.35%, down from 6.39% the week prior. A year ago at this time, the 30-year FRM averaged 5.30%. The 15-year fixed-rate mortgage decreased as well, to 5.75% from 5.76%. A year ago, it averaged 4.48%. “This week’s decrease continues a recent sideways trend in mortgage rates, which is a welcome departure from the record increases of last year,” said Sam Khater, Freddie Mac’s Chief Economist. Khater noted that moderating inflation has weakened mortgage rate growth. Both the consumer price and producer price indices, released this week, showed better-than-expected results. The CPI’s shelter cost component rose…

Applications Slip Despite Rate Dip

Mortgage applications fell last week even as rates dipped for the first time in three weeks. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 1.2%, changing course after last week’s 3.7% increase. Adjusted purchase applications fell by 2%, while the unadjusted index was down 1% from the week before and 32% lower YOY. The average interest rate for 30-year fixed loans dipped from 6.55% to 6.50%, 114 bps higher than the same time last year. “Elevated rates continue to both impact homebuyer affordability and weaken demand for refinancing. Home purchase activity has been very sensitive to rates and local market trends, including the very low…

Housing Market Slowdown Continues

Net new listings and contract volume have officially declined for twelve straight months, according to new data from HouseCanary. HouseCanary’s latest Market Pulse report, which covers 22 listing-derived metrics and compares data between April 2022 and April 2023, shows market activity was significantly hindered in the first month of Q2. “As we enter May 2023, the real estate market continues to experience uncertainty, with the purchasing market slowdown being one of the key trends observed for over a year now,” Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, said. Contract and net new listing volume both fell annually, down 17.8% and 39.8%, respectively. Listings were hit particularly hard by a nearly 45% YOY increase in removals. Home sellers who…

30-YR FRM Rose Last Week, 15-YR Declined

The 30-year FRM increased once again last week, blocking even more homebuyers from entering the market. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.43%, up from 6.39% the week prior. A year ago at this time, the 30-year FRM averaged 5.11%. The 15-year fixed-rate mortgage fell, however, down to 5.71% from 5.76%. A year ago, it averaged 4.40%. “The 30-year fixed-rate mortgage increased modestly for the second straight week, but with the rate of inflation decelerating rates should gently decline over the course of 2023,” said Sam Khater, Freddie Mac’s Chief Economist.  “Incoming data suggest the housing market has stabilized from a sales and house price perspective. The prospect of lower mortgage rates for the…

Pending Home Sales Slipped In March

Pending home sales sank in March as rate-sensitive buyers continued to skirt the market, according to the National Association of Realtors. NAR’s Pending Home Sales Index declined by 5.2% between February and March. Year-over-year, it dropped by 23.2%. All four regions saw pending sales fall YOY, and three of the four saw contract signings shrink. Signings increased slightly in the South as the region continues to attract buyers chasing affordability and sunny weather. NAR Chief Economist Lawrence Yun pointed to tight inventory as the main hindrance to sales. “Multiple offers are still occurring on about a third of all listings, and 28% of homes are selling above list price. Limited housing supply is simply not meeting demand nationally,” he said.…

Applications Rise Despite Rate Increase

Mortgage applications rose last week despite rates jumping to their highest point in more than a month. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 3.7%, changing course after last week’s 8.8% decrease. Adjusted purchase applications rose by 5%, while the unadjusted index was up 6% from the week before and 28% lower YOY. The average interest rate for 30-year fixed loans jumped from 6.43% to 6.55%, a second week of increases and the highest level in more than a month. “Both conventional and government home purchase applications increased last week. However, activity was still nearly 28% below last year’s pace, as high mortgage rates…

New Home Sales Increased In March

New home sales increased by more than expected in March but remain down significantly from last year, according to new estimates from the U.S. Census Bureau and the Department of Housing and Urban Development. Sales rose by 9.6% to a seasonally adjusted annual rate of 683,000, compared to just 1.1% in February. Sales remain down 3.4% YOY, which boasted an annual rate of 707,000. The seasonally‐adjusted estimate of new houses for sale was 432,000, representing a supply of 7.6 months at the current sales rate. Inventory remains tight even as more people are home-shopping this spring. As a result, home prices unexpectedly rose in February. “Homebuyers are window shopping and many are entering the store, but few of them are…