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…

Rates Cool Down, Increasing Demand

Mortgage rates broke a month-long upward streak, deflating for the first time in weeks and resulting in a purchase demand boost. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.88%, down from the week prior’s 6.94%. A year ago at this time, the 30-year FRM averaged 6.73%. This is the first decline in four weeks. The 15-year fixed also fell, dropping to 6.22% from 6.26%. A year ago, it averaged 5.95%. “Evidence that purchase demand remains sensitive to interest rate changes was on display this week, as applications rose for the first time in six weeks in response to lower rates,” said Sam Khater, Freddie Mac’s Chief Economist.  Mortgage loan applications were up nearly 10% from…

New Listings Down 15% Compared To Last Year

Listings are down more than 15% from last year, another pain point on the market ahead of the typically zippy spring buying season. HouseCanary’s February Market Pulse Report found that net new listings were 15.3% lower than in February 2023. Overall, inventory is up 11.7% YOY but remains generally constrained, limiting new activity. This is yet another example of market pressures as spring approaches, usually a busy homebuying season. “In January, we saw net new listings and contract volumes trend at multi-year seasonal lows. Although those metrics are slightly up versus last month, the housing market is still facing significant pressures. The Federal Reserve has all but confirmed that rates will continue to hover around the 7% mark, continuing to…

Rates Up For A Fourth Week, Skirting 7%

Mortgage rates inched up to a two-month high last week, putting pressure on hopeful spring homebuyers. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.94%, up from the week prior’s 6.90%. A year ago at this time, the 30-year FRM averaged 6.65%. This is the fourth consecutive week of increases. The 15-year fixed fell, however, to 6.26% from 6.29%. A year ago, it averaged 5.89%. “The recent boomerang in rates has dampened already tentative homebuyer momentum as we approach the spring, a historically busy season for homebuying,” said Sam Khater, Freddie Mac’s Chief Economist. “While sales of newly built homes are trending in a positive direction, higher rates and elevated prices continue to pose affordability challenges…

Rates Averaging Close To 7%

Mortgage rates aren’t going down as the spring homebuying season rapidly approaches. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.90%, up from the week prior’s 6.77%. A year ago at this time, the 30-year FRM averaged 6.50%. The 15-year fixed jumped to 6.29% from 6.12%. A year ago, it averaged 5.76%. “Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates,” said Sam Khater, Freddie Mac’s Chief Economist.  “Historically, the combination of a vibrant economy and modestly higher rates did not meaningfully impact the housing market. The current cycle is different than historical norms, as housing affordability is so low that good economic…

Existing Home Sales Rebounded In January

Existing-home sales rebounded from a December plummet in January, increasing month-over-month, but not annually. Sales increased by 3.1% to a seasonally adjusted annual rate of 4.00 million, according to the latest data from the National Association of Realtors. They were down 1.7% from the same time last year, however. The Midwest, West, and South all saw sales increase, while the Northeast held steady but didn’t decline. This is a turnaround from December, which saw existing sales shrink to their lowest point since 1995. “While home sales remain sizably lower than a couple of years ago, January’s monthly gain is the start of more supply and demand,” said NAR Chief Economist Lawrence Yun. “Listings were modestly higher, and home buyers are…

Rates Top 7%, Stifling Applications

Rising rates sent mortgage applications spiraling last week, sidelining homebuyers and forcing refis to a standstill. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 10.6%, piling onto the week prior’s 2.3% dip. Adjusted purchase applications slipped by 10%, while the unadjusted index was down by 6% and was 13% lower YOY. Rates shot up to 7.06% on the heels of less-than-ideal inflation data from January. The Fed’s preferred inflation index came in hotter than expected for January, and Wall Street pared back its bets on rate cuts from the Central Bank, now predicting they won’t come until at least May. “The much-anticipated CPI report is…

Rates Jump After Dour Inflation Data

Tough inflation data led to mortgage rates increasing for a second straight week. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.77%, up from the week prior’s 6.64%. A year ago at this time, the 30-year FRM averaged 6.32%. The 15-year fixed jumped to 6.12% from 5.90%. A year ago, it averaged 5.51%. “On the heels of consumer prices rising more than expected, mortgage rates increased this week,” said Sam Khater, Freddie Mac’s Chief Economist.  “The economy has been performing well so far this year and rates may stay higher for longer, potentially slowing the spring homebuying season. According to our data, mortgage applications to buy a home so far in 2024 are down in more…

Applications Reverse, Refis Fall

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…

Rates Hold Steady at 6.64%

Rates stayed basically the same last week, inching up just slightly. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.64%, barely budging from the week prior’s 6.63%. A year ago at this time, the 30-year FRM averaged 6.12%. Rates have stuck around the mid-6’s  for about two months now. The 15-year fixed decreased to 5.90% from 5.94%. A year ago, it averaged 5.25%. “The economy and labor market remain strong with wage growth outpacing inflation, which is keeping consumer spending robust,” said Sam Khater, Freddie Mac’s Chief Economist. “Meanwhile, affordability in the housing market is an ongoing issue due to continued high home prices, elevated mortgage rates and low supply of homes on the market, particularly…