By PATRICK LAVERY
With the end of the third quarter of 2023 in sight, indications are that the Federal Reserve will pause hiking its federal funds rate this week – as it did in June before again raising the target range in July – and investors will be watching closely on Wednesday to see if Chairman Jerome Powell gives any indication as to what they might do to end the calendar year.
The FOMC’s course of action, while holding no direct bearing on mortgage rates, acts as a strong indicator of what direction those rates will go in next. According to Business Insider, a pause on the part of the Fed won’t do much to move mortgage rates, currently above…
Mortgage activity dipped in August as rates reached new highs and inventory remained low, according to Black Knight’s latest Mortgage Monitor report.
The 30-year conforming soared above 7.25% last month, its highest level in more than 20 years, before cooling down to 7.07%.
As a result, overall rate lock volumes sank for a third straight month, down 1.5% from July.
“August was another rough month for mortgage borrowers from an interest rate perspective,” said Andy Walden, VP of enterprise research and strategy at Black Knight. “Rates did edge down toward the end of August, but prospective homebuyers still face the least affordable housing market in nearly 40 years.”
The biggest driver was purchase volume, which fell almost a full 2%…
Mortgage rates dipped again last week but remain above the dreaded 7% threshold.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.12%, down from 7.18%. A year ago at this time, the 30-year FRM averaged 5.89%.
This is the second week of declines but the fourth straight week of 7%-plus rates.
The 15-year fixed-rate mortgage slipped to 6.52% from 6.55%. A year ago, it averaged 5.16%.
“The economy remains buoyant, which is encouraging for consumers. Though while inflation has decelerated, firmer economic data have put upward pressure on mortgage rates which, in the face of affordability challenges, are straining potential homebuyers,” said Sam Khater, Freddie Mac’s Chief Economist.
The median U.S. home sale price is up…
Mortgage applications dipped again after a brief increase last week, despite rates cooling.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 2.9%, drifting down after the week prior’s 2.3% increase.
Applications are now at their lowest level since December 1996. Adjusted purchase applications fell by 2%, while the unadjusted index dipped 5% from the week before and was 28% lower YOY.
The average interest rate for a 30-year fixed loan fell 10 bps to 7.21%.
“Both purchase and refinance applications fell, with the purchase index hitting a 28-year low, as prospective buyers remain on the sidelines due to low housing inventory and elevated mortgage rates,”…
Mortgage rates cooled last week after a weeks-long run of increases.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.18%, down from 7.23%. A year ago at this time, the 30-year FRM averaged 5.66%.
The 15-year fixed-rate mortgage remained the same at 6.55%. A year ago, it averaged 4.98%.
“Mortgage rates leveled off this week but remain elevated. Despite continued high rates, low inventory is keeping house prices steady,” said Sam Khater, Freddie Mac’s Chief Economist.
Active inventory shrank YOY in August. But Realtor.com reported an “unusual increase” in newly listed homes month-over-month, which might suggest homeowners are adjusting to the high-rate environment and preparing to sell come fall.
Any significant change in stock will be…
Mortgage applications tanked last week, raising concerns over the market’s future.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell by 4.2%, supercharging after the week prior’s 0.8% decline.
The average interest rate for 30-year fixed loans rose from 7.16% to 7.31%, pushing homeownership farther out of reach for many Americans. This is the fourth straight week of increases and the highest level since December 2000.
“Applications for home purchase mortgages dropped to their lowest level since April 1995, as homebuyers withdrew from the market due to the elevated rate environment and the erosion of purchasing power. Low housing supply is also keeping home prices high in…
Rate lock volumes sank in July as mortgage rates exceeded 7% for the first time since November 2022.
Black Knight’s Optimal Blue Mortgage Market Indices for July found that 30-year conforming rates cross 7% early in the month before bouncing down and up again, ultimately ending the month at 6.88%.
In line with rising rates, lock volumes dipped 7% from June.
“While they moved around a bit in July, there was no escaping the fact that conforming 30-year rates topped 7% in July for the first time since they spiked last fall,” said Andy Walden, vice president of enterprise research and strategy at Black Knight.
“On both a practical and psychological level, that put further downward pressure on mortgage demand.…
Mortgage rates increased for a third consecutive week, pushing averages closer to 7% and adding pressure to buyers.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.96%, up from 6.90%. A year ago at this time, the 30-year FRM averaged 5.22%.
The 15-year fixed-rate mortgage also increased, up to 6.34% from 6.25%. A year ago, it averaged 4.59%.
“There is no doubt continued high rates will prolong affordability challenges longer than expected, particularly with home prices on the rise again,” said Sam Khater, Freddie Mac’s Chief Economist.“However, upward pressure on rates is the product of a resilient economy with low unemployment and strong wage growth, which historically has kept purchase demand solid.”
Demand has been sluggish…
Mortgage rates increased slightly last week, inching up after falling the week prior.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.81%, up from 6.78%. A year ago at this time, the 30-year FRM averaged 5.30%.
The 15-year fixed-rate mortgage also increased, up to 6.11% from 6.06%. A year ago, it averaged 4.58%.
“Higher interest rates continue to dampen activity in interest rate-sensitive sectors, such as housing. However, overall U.S. consumer confidence is unwavering, surging to a two-year high in the Conference Board’s Consumer Confidence Index for July 2023,” said Sam Khater, Freddie Mac’s Chief Economist.
“Rising consumer confidence often leads to greater spending, which could drive more consumers into the housing market.”
Consumers believe that…
Mortgage applications decreased last week as rates hovered near 7%.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 1.18%, wiping out last week’s 1.1% bump.
Adjusted purchase applications fell by 3%, while the unadjusted index dipped 2% from the week before and 23% lower YOY.
The average interest rate for 30-year fixed loans remained the same as last week at 6.87%, driving the decline in activity.
The FHA share of total applications saw the biggest change, down nearly 10 bps.
These applications fell to a 12.7% share from 13.6%, with an average interest rate of 6.80%, up from 6.77%.
FHA loans tend to do well…
