Mortgage applications are swinging up and down, falling last week as rates posted increases.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 2.3%, countering the week prior’s 3.7% rise.
Adjusted purchase applications slipped by 3%, while the unadjusted index increased by 4% and was 12% lower YOY.
Rates rose to 6.87%, their highest point since December, but have stayed in the mid-6% range since the beginning of 2024.
“Purchase applications remained subdued as elevated rates continue to add to affordability challenges along with still-low existing housing inventory. Refinance applications declined and remained depressed, with rates still higher than a year ago,” said Joel Kan, MBA’s…
The Mortgage Bankers Association responded to comments by U.S. Treasury Secretary Janet Yellen who said that independent mortgage banks require regulatory oversight as they navigate commercial real estate debt.
In a hearing for the Senate Banking Committee, Yellen said the Financial Stability Oversight Council is focusing on nonbank mortgage companies because they “lack access to deposits, which banks have.”
She suggested that financial stress from commercial real estate weakness and low residential refinancing activity could lead to some IMBs failing.
“[Non-bank lenders are] reliant on short-term financing that may be a lot less stable than deposits, and in stressful times, their credit lines can be pulled,” Yellen said. “There is concern that in stressful market conditions we could see the…
Mortgage applications shot up last week, reversing a slip, as rates remain stable into February.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 3.7%, countering the week prior’s 7.2% dip.
Adjusted purchase applications slipped by 1%, while the unadjusted index increased by 6% and was 19% lower YOY.
Rates actually rose slightly, clocking in at 6.8%, but have stayed in the mid-6% range since the beginning of 2024.
“Mortgage rates have stayed close to where they started the year, despite swings in Treasury yields because of slowing inflation offset by stronger than expected readings on the job market,” said Joel Kan, MBA’s Vice President and…
Purchase applications slipped, breaking a weeks-long upward trend, as rates barely budge and inventory shortages keep prices high.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell by 7.2%, wiping out the week prior’s 3.7% spike.
Adjusted purchase applications slipped by 11%, while the unadjusted index decreased by 6% and was 20% lower YOY. The data includes an adjustment for the MLK holiday.
Demand may have been tempered by rates ticking up slightly the week prior and hovering at 6.78%. Rates haven’t moved much in the last month, though they remain well below October 2023’s high of 7.9%.
Stock shortages and high home prices are keeping purchase…
By ERIN FLYNN JAY and KIMBERLEY HAAS
As business models continue to change in the post-Covid economy, some market experts are predicting a commercial real estate crash while others are saying there could be a revival in investment opportunities.
Desmond Lachman, an American Enterprise Institute senior fellow, recently wrote that high vacancy rates have already caused commercial property prices to decline. At the same time, property owners need to roll over around $500 billion in maturing loans at higher interest rates.
Lachman said this spells trouble for the banking sector in general and the regional banks in particular. He predicted commercial real estate troubles could lead to the failure of 385 regional banks.
“With as much as 18% of their…
Mortgage applications rose again despite rates moving slightly up last week.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – jumped 3.7%, adding to the week prior’s 10.4% spike.
Adjusted purchase applications rose by 8%, while the unadjusted index increased by 3% and was 18% lower YOY.
Demand may have been tempered by rates ticking up slightly from 6.75% to 6.78%. Still, even as buyers remain sensitive to rate movement they do appear to be leaping to lock in rates under 7%.
“Mortgage rates increased slightly last week, but there continues to be an upward trend in purchase activity. Conventional and FHA purchase applications drove most of the…
Home construction slipped for the first time in four months in December, with single-family starts taking a hit.
Residential home construction fell 4.3% last month to a 1.46 million annualized rate, according to data from the U.S. Census Bureau. They were up 7.6% from December 2022’s rate of 1.36 million, however.
The dip comes on the heels of a surge in November that sent new construction to a 6-month high. Notably, the decline was driven by single-family construction. Multi-family starts actually rose to a 5-month high.
Permit applications also fared well after performing poorly the month prior. Single-family permits soared to their highest rate since May 2022, and multi-family also ticked up.
Permits offer an indication of future construction, suggesting…
Mortgage applications soared again as treasury yields pushed rates to their lowest level in three weeks.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – jumped 10.4% on the heels of the week prior’s 9.9% bump.
Adjusted purchase applications rose by 9%, while the unadjusted index increased by 28% and was 20% lower YOY.
Refis also saw an increase of 11% and accounted for 37.5% of total applications. In the past decade, they averaged 58% of all activity.
The rush comes as the 30-year fixed-rate fell to 6.75% from 6.81%. Americans seem to be taking advantage of cooling rates in the new year after little activity in the…
Arrive Home’s president has been named chair of the California Mortgage Bankers Association’s Diversity, Equity & Inclusion Committee.
Tai Christensen will share the role with the current vice-chair of the committee, Stephanie Whittenberg.
The two will work to promote diversity and inclusion in the mortgage lending world. This has been a priority for the group since it first launched its DE&I Committee in 2021.
“I am excited to continue to assist the CMBA’s efforts to promote diversity in the mortgage industry,” Christensen said. “As someone who has dedicated much of their career to helping bridge the homeownership gap in underserved communities, I am eager to initiate more conversations about how industry leaders can effectuate this much-needed change and help advance…
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…
