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…

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…

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…

Purchase Loans Jump As Rates Dip Again

Mortgage loan application volume rose last week, responding to a dip in rates, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, increased by 2.7%.  The 30-year fixed rate once again fell below 7%, propelling potential buyers into action. Rates have been going back and forth between the high 6.90s and low 7s for several weeks. This drop from 7.14% to 6.90% is the largest single-week decline since July 2022. The adjusted purchase index rose 4%, while the unadjusted purchase index decreased by 10% and was 46% lower YOY.  “Application activity, adjusted to account for the Veterans Day holiday, increased in response to the drop in rates – driven…

Loan Volume Stayed Steady Last Week, But Bad Times Lay Ahead

Mortgage loan application volume dipped just slightly last week, continuing a weeks-long trend of relative calm, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 0.1%. Mortgage rates jumped back up to 7.14% after cooling slightly. The adjusted purchase index rose 1%, while the unadjusted purchase index decreased by 1% and was 41% lower YOY.  “Mortgage rates edged higher last week following news that the Federal Reserve will continue raising short-term rates to combat high inflation. The 30-year fixed rate remained above 7% for the third consecutive week, and there were increases for most other loan types,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. …

You Can Get A Mortgage At Walmart

By KIMBERLEY HAAS Leaders at Lenders One Cooperative are planning to open branch locations at select Walmart stores in seven states. The company, established in 2000, is a national alliance of independent mortgage bankers, banks, and credit unions managed by a subsidiary of Altisource Portfolio Solutions. President Justin Demola said in a recent interview with The Mortgage Note that opening branches inside Walmart stores makes sense for their members and customers who will have access to lending services in the same place they shop. “Walmart is an interesting opportunity for us and our members,” Demola said. “The timing has lined up nicely. This project started almost two years ago when the mortgage market was buzzing. Interest rates were super low…