Mortgage loan application volume tumbled last week, falling to its slowest pace since 1997 as rates hit 6.75%, according to the Mortgage Bankers Association’s weekly survey. Interest rates are now at their highest point since 2006. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 14.2%. The adjusted purchase index fell 13%, while the unadjusted purchase index decreased 13% and was 37% lower YOY. The refinance index dropped by 18% and was 86% lower than the same time last year. Refis made up 29% of total applications. “The current rate has more than doubled over the past year and has increased 130 basis points in the past seven weeks alone. The steep increase in rates…
New home sales rose in August to a seasonally adjusted annual rate of 685,000, up 28.8% from July’s revised rate but down 0.1% YOY, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. The seasonally‐adjusted estimate of new houses for sale at the end of August was 461,000, representing a supply of 8.1 months at the current sales rate. The median sales price of a new home was $436,800, while the average sales price was $521,800. The data comes on the heels of a surprise increase in mortgage applications last week, despite rates rising to their highest point since October 2008. “As with the swings in rates and other uncertainties around the housing…
Mortgage loan application volume fell last week as mortgage rates topped 6% for the first time since 2008, nearly doubling year over year. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 1.2%. The adjusted purchase index rose 0.2%, while the unadjusted purchase index dropped 12% and was 29% lower YOY. The refinance index dropped by 4% and was 83% lower than the same time last year. Refis made up 30.2% of total applications. “Higher mortgage rates have pushed refinance activity down more than 80 percent from last year and have contributed to more homebuyers staying on the sidelines. Government loans, which tend to be favored by…
Mortgage loan application volume fell 3.7% last week, continuing a downward spiral as mortgage rates hit their highest point since mid-July, the Mortgage Bankers Association’s weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 3.7%. The adjusted purchase index fell 2%, while the unadjusted purchase index dropped 4% and was 23% lower YOY. The refinance index dropped by 8% and made up 30.3% of total applications, down 83% from the same time last year. “Mortgage rates and Treasury yields rose last week as Federal Reserve officials indicated that short-term rates would stay higher for longer. Mortgage rates have been volatile over the past month, bouncing between 5.4% and 5.8%,” said Joel Kan,…
Mortgage loan application volume fell 2.3% last week, reversing a two-week uptick, the Mortgage Bankers Association’s weekly survey shows. Overall applications dipped to their lowest level since 2000. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 2.3%. The adjusted purchase index fell 1% while the unadjusted purchase index dropped 2% and was 18% lower YOY. The refinance index dropped by 5% and made up 31.2% of total applications, down 82% from the same time last year. Refinances are at their lowest level since November 2000, pushed down by a 6% decline in conventional refinance applications. ARM activity fell to 7% of total applications. “Home purchase applications continued to be held down by rapidly drying…
By ISAIAS PACHECO The Mortgage Bankers Association weekly mortgage application survey has recorded an increase of 0.2% for the week of August 5. On an unadjusted basis, the index decreased 0.3% compared with the previous week. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said mortgage rates remained volatile last week – after drops in the previous two weeks. Kan said mortgage rates ended up rising four basis points and mortgage applications were relatively flat, with a decline in purchase activity offset by an increase in refinance applications. “The purchase market continues to experience a slowdown, despite the strong job market. Activity has now fallen in five of the last six weeks, as buyers remain on the…
New home purchase applications fell 12% YOY in June, and were down 10% from May, according to the Mortgage Bankers Association’s (MBA) Builder Application Survey. New single-family home sales ran at a seasonally-adjusted annual rate of 620,000 units in June, down 14.7% from May’s pace of 727,000 units. The unadjusted rate was estimated to be 57,000 home sales, down 6.6% from 61,000 in May. New home sales are estimated using mortgage application information and assumptions regarding market coverage and other factors. “Higher mortgage rates and heightened economic uncertainty cooled borrower demand in June, leading to new-home purchase applications declining to the lowest level since April 2020,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Additionally, new…
Mortgage loan application volume rose by 4.2% last week despite rates surging to their highest point since November 2008, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, increased by 4.2%. The adjusted purchase index rose 8%, while the unadjusted purchase index was up by 6% and was 10% lower YOY. The refinance index dropped by 3% and made up 29.7% of total applications. Refi volume is down 77% in the last year. ARM activity rose to 10.6% of total applications. Mortgage rates increased by 33 basis points to 5.98%, their highest since 2008 and the largest single-week increase since 2009. MBA Associate Vice President of Economic and Industry…
Mortgage loan application volume reversed course after five straight weeks of decreases, rising 6.6% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, increased by 6.6%. The adjusted purchase index rose 8%, while the unadjusted purchase index was up by 18% and was 16% lower YOY. The refinance index rose 4% and was down 76% YOY and made up 31.7% of total applications. ARM activity fell to 8.1% of total applications. Joel Kan, MBA Association Vice President of Economic and Industry, noted that applications rose despite an interest rate explosion last week. The 30-year fixed-rate hit 5.65% last week, up 25 basis points and the highest level…
After ticking up 2% last week, mortgage loan application volume tanked by 11% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, fell by 11%. The adjusted purchase index fell by 12%, while the unadjusted purchase index fell by 12% as well and was 15% lower YOY. The refinance index fell 10% and was down 76% YOY. Refinances made up 33% of total applications, up from 32.4%. “Mortgage applications decreased for the first time in three weeks, as mortgage rates – despite declining last week – remained over two percentage points higher than a year ago and close to the highest levels since 2009. For borrowers looking…
