Apps Shrink Again, Wiping Out Last Week’s Gains

After an uptick last week, mortgage applications sank again, falling to their lowest level in a month as rates surged. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 4.4%, wiping out last week’s 3% gains. Adjusted purchase applications fell by 5%, though the unadjusted index rose 6% from the week before and 22% lower YOY. Refinances dropped, down 4% from the week prior. They remain 30% lower than the same time last year, comprising only 27.4% of total applications. In the past decade, refis averaged 58% of total activity. The average interest rate for 30-year fixed loans rose from 6.75% to 6.85%. This is the…

Applications Up 3%, Driven By New Home Sales

Mortgage applications increased last week, with purchase applications reaching their highest level of activity since May. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 3%. Adjusted purchase applications rose by 3%, though the unadjusted index was down 8% from the week before and 21% lower YOY. Refinances rose, up 3% from the week prior. They remain 32% lower than the same time last year, comprising only 27.2% of total applications. In the past decade, refis averaged 58% of total activity. The average interest rate for 30-year fixed loans rose from 6.73% to 6.75%, breaking a three-week streak of declines. MBA VP and Deputy Chief Economist…

Mortgage Applications Just Barely Stay Positive

Mortgage applications just barely stayed positive last week, ticking up slightly. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 0.5%. Adjusted purchase applications rose by 2%, while the unadjusted index was down 0.1% from the week before and 32% lower YOY. The average interest rate for 30-year fixed loans fell for a third week from 6.77% to 6.73%. Though it’s not a huge drop, any dip will pull some rate-sensitive buyers off the sidelines. This is especially true for new construction, which is having a boom moment thanks to the crippling shortage of existing homes for sale. “Purchase applications increased, driven by a 2% gain…

Applications Turn Around After Four Weeks Of Declines

Mortgage applications turned around after four weeks of declines as rates dipped slightly. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 7.2%. Adjusted purchase applications rose by 8%, while the unadjusted index was up 17% from the week before and 27% lower YOY. The average interest rate for 30-year fixed loans fell for a second week from 6.81% to 6.77%. Though it’s not a huge drop, any dip will pull some rate-sensitive buyers off the sidelines. “Rates that are still more than a percentage point higher than a year ago, and low for-sale inventory continue to constrain homebuying activity in many markets. The average loan…

Applications Fall For A Fourth Straight Week

Mortgage applications fell for a fourth consecutive week, even as rates retreated from near-7% highs. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 1.4%. Adjusted purchase applications fell by 2%, while the unadjusted index was down 13% from the week before and 27% lower YOY. Rates took a turn, however, with the average interest rate for 30-year fixed loans falling 10 bps from 6.91% to 6.81%. Though that’s good news for home shoppers who can’t wait for a major shift in rates, it’s still the second-highest rate of 2023. “Overall applications were more than 30% lower than a year ago, as borrowers continue to grapple…

May Slump: Mortgage Applications Down Again

Mortgage applications fell again last week as borrowers recoil in the face of rising rates. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 4.6%, adding to last week’s drag. Adjusted purchase applications fell by 4%, while the unadjusted index was down 5% from the week before and 30% lower YOY. The average interest rate for 30-year fixed loans rose from 6.57% to 6.69%, the highest level since March. “Since rates have been so volatile and for-sale inventory still scarce, we have yet to see sustained growth in purchase applications. Refinance activity remains limited, with the refinance index falling to its lowest level in two months…

Purchase Apps Fall To Slowest Pace In A Month

Mortgage applications fell last week, wiping out the prior week’s gains, as purchase applications dropped to their slowest pace in a month. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 6.3%, changing course after last week’s 6.3% increase. Adjusted purchase applications fell by 4.8%, while the unadjusted index was down 5% from the week before and 26% lower YOY. The average interest rate for 30-year fixed loans rose from 6.48% to 6.57%, its highest level in two months. Refinances fell 8% from the week prior after a 10% increase last week. They remain 43% lower than the same time last year, comprising only 27.4% of…

Multifamily, Commercial Lending To Drop 20% In 2023

The Mortgage Bankers Association has once again adjusted its commercial and multifamily lending expectations downward as economic uncertainty continues to constrain the market. MBA’s latest forecast shows commercial and multifamily borrowing falling 20% in 2023 to $654 billion, down from $816 billion in 2022. This is a $9 billion reduction from its January prediction. Multifamily on its own accounts for a 14% drop, slipping from $437 billion in 2022 to $375 billion this year. Apartment investment sales declined at the end of 2022 in response to the Central Bank raising interest rates. “Higher interest rates, uncertainty about property values, and questions about the outlook for the cash flows of some properties led to a slowdown in commercial real estate transactions…

Industry Reacts To FHFA’s DTI Rule Change

The Federal Housing Finance Agency has rescinded a rule changing upfront fees based on borrowers’ debt-to-income ratios. If it had gone through, the policy would have created an adjustment for DTIs higher than 40% that Fannie Mae and Freddie Mac would acquire. Back in March, the agency delayed the implementation of these fees to talk it through with industry leaders, who largely opposed the move. One major concern was that small lenders would be hindered by compliance: disclosure laws require lenders to alert borrowers of pricing throughout the application process, but a borrower’s income and expenses can change dramatically throughout the loan procedure, requiring an unmanageable compliance burden. The Community Home Lenders Association argued against the adjustment at the time,…

Mortgage Applications Rose After May’s FOMC Meeting

Mortgage applications rose last week across the board as rates dipped in the wake of positive news from the Fed. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 6.3%, changing course after last week’s 1.2% decrease. Adjusted purchase applications rose by 5%, while the unadjusted index was up 5.3% from the week before and 32% lower YOY. The average interest rate for 30-year fixed loans dipped from 6.50% to 6.48%. Refinances also showed movement, up 10% from the week prior. They remain 44% lower than the same time last year, however, comprising only 28% of total applications. In the past decade, refis averaged 58% of…