Rising rates sent mortgage applications spiraling last week, sidelining homebuyers and forcing refis to a standstill.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 10.6%, piling onto the week prior’s 2.3% dip.
Adjusted purchase applications slipped by 10%, while the unadjusted index was down by 6% and was 13% lower YOY.
Rates shot up to 7.06% on the heels of less-than-ideal inflation data from January. The Fed’s preferred inflation index came in hotter than expected for January, and Wall Street pared back its bets on rate cuts from the Central Bank, now predicting they won’t come until at least May.
“The much-anticipated CPI report is…
Tough inflation data led to mortgage rates increasing for a second straight week.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.77%, up from the week prior’s 6.64%. A year ago at this time, the 30-year FRM averaged 6.32%.
The 15-year fixed jumped to 6.12% from 5.90%. A year ago, it averaged 5.51%.
“On the heels of consumer prices rising more than expected, mortgage rates increased this week,” said Sam Khater, Freddie Mac’s Chief Economist.
“The economy has been performing well so far this year and rates may stay higher for longer, potentially slowing the spring homebuying season. According to our data, mortgage applications to buy a home so far in 2024 are down in more…
The Federal Open Market Committee’s June meeting is just around the corner, and while most experts think the Fed will pause its rate increases, others are wary.
Most analysts expect the Central Bank not to introduce another rate hike at the meeting, scheduled for June 13-14, according to a poll of economists from Reuters. More than 90% of those polled, 78 of 86 total, don’t think another hike is on the horizon. These analysts think the Fed will pause to evaluate the impact of the 500 bps increases they’ve already instituted.
“[Fed Chairman Jerome Powell] expressed his bias in favor of remaining on hold in June … he’s going to stick with that as it gives them an additional month…
