Purchase Apps, Refis See Boost As Rates Retreat

Both purchase applications and refis saw increases as rates fell for a fifth consecutive week. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – rose by 7.4%. Adjusted purchase applications increased by 3%, while the unadjusted index was up 4% from the week before and was 37% lower YOY. Refinances saw a big upswing, rising 18% from the week prior. But they remain 75% lower than the same time last year, comprising only 33.9% of total applications. In the past decade, refis averaged 58% of total activity. “Both purchase and refinance applications increased last week and have shown gains in three of the past four weeks because of…

Loans Apps Drop, Breaking Upward Trend

The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell by 9%. Adjusted purchase applications fell by 10%, but the unadjusted index was up 7% from the week before. Purchase applications are down by more than 40% YOY. Refinances dipped as well, down 7% from the week prior.  They remain 80% lower than the same time last year, comprising only 31.2% of total applications. In the past decade, refis averaged 58% of total activity. “Mortgage rates declined for the fourth straight week and have now fallen almost 40 basis points over the past month. Treasury yields were higher on average last week, while mortgage rates decreased, which was…

Loan Apps Rise Again, Buoyed By Refis

Mortgage loan application volume increased again last week, continuing a trend of rising demand as mortgage rates slip. The Mortgage Bankers Association’s weekly survey showed the adjusted Market Composite Index, a measure of mortgage loan application volume, rose by 7%. The results included an adjustment for Martin Luther King, Jr. Day. Refinances drove the increase, up 15% from the week prior as mortgage rates fell to 6.2%, their lowest level since September. They remain 77% lower than the same time last year, however, comprising only 31.9% of total applications. In the past decade, refis averaged 58% of total activity. Purchase demand saw a boost as well, though not as drastic. Applications increased at a seasonally adjusted rate of 3%, but…

Purchase Loans See Double-Digit Boost

Mortgage loan application volume saw a double-digit increase last week as sinking rates led to a purchase demand rebound. The Mortgage Bankers Association’s weekly survey showed the adjusted Market Composite Index, a measure of mortgage loan application volume, jumped by 27.9%. Purchase demand increased at a seasonally adjusted rate of 25% and an unadjusted rate of 32%. Though it remains 35% below last year’s levels, the increase is good news for brokers whose businesses have been impacted by affordability issues and high rates. Mortgage rates fell to 6.23% last week. “Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak mortgage rate last fall,”  said Mike Fratantoni, MBA’s SVP and Chief…

Refis See Boost As Rates Slip Again

Mortgage loan application volume rose in the first week of 2023, boosted by a flurry of refinancing, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, increased by 1.2%. Refinances saw the most improvement, up 5% from the week prior, as homeowners took advantage of the market’s reaction to indicators of a slowing economy. Data released last week showed the U.S. economy created fewer jobs in December, and hourly wages grew at the slowest annual pace in 16 months. Wage growth has fallen by a full percentage point since Q2 2022. As a result, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell from…

Refis See A Boost As Rates Hit Three-Month Low

Mortgage loan application volume rose again, with refinances up 6% as interest rates hit a three-month low, according to the Mortgage Bankers Association’s weekly survey. Refinances remain 85% lower than the same time last year, however, comprising 31.3% of total applications. Purchases took a hit with the adjusted purchase and unadjusted purchase indices down by 0.1% and 3%, respectively. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell from 6.42% to 6.34%, its lowest point since September. Despite that, the adjusted Market Composite Index, a measure of mortgage loan application volume, increased by just 0.9%. “This is a particularly slow time of year for homebuying, so it is not surprising that purchase applications did not…

Monthly Mortgage Costs Fell In November, But Are Still Up 66% YOY

Homebuyers are finally starting to see some moderation in prices as the market corrects.  The cost of a new mortgage fell 4.8% in November as mortgage rates plunged, according to Zillow’s latest Market Report. This is only the second time mortgage costs have declined in the past 19 months. Falling home values and shrinking mortgage rates forced prices to cool. Rates dropped 57 basis points in November alone.  The typical U.S. home saw its value shrink 0.2% from October to November, and is down 0.5% from a peak in June. Renters also reaped the benefits of declining values, with rents seeing their largest single-month drop in the seven-year history of Zillow’s data. Affordability remains a challenge. Monthly mortgage costs are…

Loan Apps Increase, Breaking Downward Streak

Mortgage loan application volume rebounded last week, breaking a weeks-long streak of declines, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, increased by 3.2%.  The adjusted purchase index rose by 4%, though the unadjusted purchase index decreased by 1% and was 38% lower YOY.  “Mortgage rates increased slightly after a month of declines, as financial markets reacted to mixed signals regarding inflation and the Federal Reserve’s next policy moves. The 30-year fixed rate inched to 6.42%, which is still close to the lowest rate in a month,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.  The Federal Reserve is expected to raise interest rates by half…

Purchase Loans Fall Again Despite Rate Slowdown

Mortgage loan application volume declined again last week despite rates falling for all loan products, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 1.9%.  The adjusted purchase index fell 3%, though the unadjusted purchase index increased by 31% and was 40% lower YOY.  The 30-year fixed rate dropped to 6.41%, having now fallen 73 bps from just a month ago. It remains 3 percentage points higher than December of 2021. “Purchase activity slowed last week, with a drop in conventional purchase applications partially offset by an increase in FHA and USDA loan applications. The average loan size for purchase applications decreased to $387,300 – its lowest…

Refis Fall To Lowest Level Since 2000

Mortgage loan application volume dipped last week despite rates slipping, affected by the holiday and the weakening economy, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 0.8%.  The adjusted purchase index rose 4%, while the unadjusted purchase index decreased by 31% and was 41% lower YOY.  The 30-year fixed rate dropped to 6.49%, having now fallen 57 bps in just four weeks. Rates declined for all other loan types, as well. “The economy here and abroad is weakening, which should lead to slower inflation and allow the Fed to slow the pace of rate hikes,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.  “Purchase…