Cooling Rates Boosts Refis Again

Mortgage applications rose again as rates slipped for a third week and refis rallied. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — rose by 1.9%, adding to last week’s 0.5% increase. Adjusted purchase applications declined, however, by 1%, while the unadjusted index was down 2% and 11% lower YOY. Refinances once again drove the rising data this week. Rates declined to 7.01%, their lowest level in seven weeks. “Rates coming down from recent highs spurred some borrowers to act, with increases across both conventional and government refinance applications. VA refinances had a double-digit increase for the third consecutive week, although the current level of refinancing is…

Purchase Applications Slip, Refis See Boost

Mortgage applications rose slightly last week, buoyed by a refi turnaround even as purchase demand faltered. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — rose by 0.5%, adding to last week’s 2.6% increase. Adjusted purchase applications declined, however, by 2%, while the unadjusted index was down 2% and 17% lower YOY. Refinances instead drove the rising data this week. Rates declined for a second week, down another 10 BPS to 7.08%, their lowest level since April. “The decline in rates led to a small boost to refinance applications, including another strong week for VA refinances. However, the overall level of refinance activity remains low. Purchase applications…

Rates Fall 11 BPS, Applications Rally

Mortgage applications rallied last week as a slowing jobs market and positive indications from the Central Bank led to rates plummeting.  The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — rose by 2.6%, reversing last week’s 2.3% dip. Adjusted purchase applications increased by 2%, while the unadjusted index was up 2% and 17% lower YOY.  Rates declined for the first time since March, falling a full 11 bps to 7.18%. FHA loans drove the upward push, jumping 5%, as their rates plummeted to 6.92%. It’s been weeks since these rates were last below 7%. “First-time homebuyers account for roughly half of purchase loans, and the government lending…

Applications Slip Again Ahead Of FOMC Meeting

Mortgage applications declined again last week as rates continued their upward march.  The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — fell by 2.3%, adding to last week’s 2.7% dip. Adjusted purchase applications slipped by 2%, while the unadjusted index was down 1% and 14% lower YOY.  Rates jumped to 7.29%, their highest point since November 2023. “Inflation remains stubbornly high, and this trend is convincing markets that rates, including mortgage rates, are going to stay higher for longer,” said Mike Fratantoni, MBA’s SVP and Chief Economist.  As buyers desperately seek ways to lower their monthly payments, ARMs clocked another strong week, accounting for 7.8% of applications.…

Applications Slip As Rates Reach 7.24%

Mortgage applications declined last week as rates soared to a new high for 2024. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — fell by 2.7%. Adjusted purchase applications slipped by 1%, while the unadjusted index was up 0.2% and 15% lower YOY.  Homebuyers are facing the highest rates of the year, with the 30-year fixed rate jumping to 7.24%. This is their highest point since late 2023. “Purchase applications declined, as homebuyers delayed their purchase decisions due to strained affordability and low supply,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. Notably, the share of ARM applications shot up to 7.6% as buyers looked…

Applications Rise On Refi Strength, Purchases Wobble

Mortgage applications ticked up slightly last week, buoyed by a refi boost as purchase applications tanked in the face of 7% rates. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — increased by 0.1%, following the week prior’s 0.6% slip. Adjusted purchase applications fell by 5%, while the unadjusted index was down 4% and 23% lower YOY.  Rates took a turn upward in the face of a surprisingly strong unemployment report and continued inflation stickiness, rising to 7.01%, their highest point in more than a month. “Mortgage rates moved higher last week as several Federal Reserve officials reiterated a patient posture on rate cuts. Inflation remains stubbornly…

Applications Fall For Another Week

Mortgage applications slipped again as rates stayed put in the high 6%s, keeping affordability at the forefront of buyers’ minds. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — decreased by 0.6%, following the week prior’s 0.7% slip. Adjusted purchase applications slipped by 0.1%, while the unadjusted index was up 1% and 13% lower YOY.  Rates pulled back slightly, clocking in at 6.91% and the 15-year fixed rate fell to its lowest level in two months, 6.35%. But both are high enough to deter borrowers, according to MBA Vice President and Deputy Chief Economist Joel Kan. “Elevated mortgage rates continued to weigh down on home buying. Purchase…

Applications Dip For Second Week

Mortgage applications are down for a second week even as rates fell slightly. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — decreased by 0.7%, following the week prior’s 1.6% slip. Adjusted purchase applications slipped by 0.2%, while the unadjusted index was up 2% and 16% lower YOY.  Rates pulled back slightly, clocking in at 6.93%, but remained high enough to deter borrowers, according to MBA Vice President and Deputy Chief Economist Joel Kan. “Purchase applications were essentially unchanged, as homebuyers continue to hold out for lower mortgage rates and for more listings to hit the market,” he added. “Lower rates should help to free up additional…

Rates Near 7% Send Applications Tumbling

Mortgage applications are yo-yoing as affordability-minded buyers respond to fluctuating rates. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — decreased by 1.6%, following the week prior’s 7.1% bump. Adjusted purchase applications slipped by 1%, while the unadjusted index was down 1% and 14% lower YOY.  Rates drove the downturn, as they jumped to 6.97% after three weeks of decreases. Too-hot inflation data is moving rates around, though they have mostly stayed in the mid- to high-6’s. “Mortgage applications continued to show sensitivity to rate movements, and both purchase and refinance activity decreased over the week. With housing supply low and prices high, the average loan size…

Rates Retreat, Giving Refinances A Boost

Mortgage applications increased for a second week as rates retreated from 7%. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — increased by 7.1%, following the week prior’s 9.7% bump. Adjusted purchase applications rose by 5%, while the unadjusted index was up 6% and 11% lower YOY.  “Mortgage rates dropped below 7% last week for most loan types because of incoming economic data showing a weaker service sector and a less robust job market, with an increase in the unemployment rate and downward revisions to job growth in prior months,” said Mike Fratantoni, MBA’s SVP and Chief Economist.  Nonfarm payrolls rose by 275,000 in February while the…