Mortgage applications rose slightly last week, driven by an increase in adjustable-rate applications.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 0.6%.
Mortgage rates shot up for all loan types but adjustable-rate mortgages, leading to a rush on these loans, which boosted overall volume.
ARM applications jumped by 15% in just one week, pushing them to a 9.2% share of all applications, their highest level since November 2022.
Adjusted purchase applications inched up 1%, while the unadjusted index rose by 1% from the week before and was 19% lower YOY.
“The yield curve has become less inverted in recent weeks and ARM pricing has certainly…
Consumer sentiment is stuck in the pits thanks to soaring mortgage rates.
Fannie Mae’s Home Purchase Sentiment Index sank further in September, down by 2.4 points to 64.5. The full HPSI is up 3.7 points YOY, a decline from August.
Five of the index’s six components fell month-over-month. The home price expectations component increased, resulting in a net negative outlook.
Only 16% of respondents say it’s a good time to buy a home, down from 18% last month, while 84% say it’s a bad time to buy. This is new survey high.
The share of respondents who say it’s a good time to sell dropped as well, down to 63% from 66%.
Driving this pessimistic streak are mortgage rates, which…
Mortgage rates climbed again last week following treasury yield gains in the wake of political turmoil and an unexpected jobs report spike.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.49%, jumping from 7.31%. A year ago at this time, the 30-year FRM averaged 6.66%.
The 15-year fixed-rate rose to 6.78% from 6.72%. A year ago, it averaged 5.90%
“Mortgage rates maintained their upward trajectory as the 10-year Treasury yield, a key benchmark, climbed,” said Sam Khater, Freddie Mac’s Chief Economist. “Several factors, including shifts in inflation, the job market, and uncertainty around the Federal Reserve’s next move, are contributing to the highest mortgage rates in a generation. Unsurprisingly, this is pulling back homebuyer demand.”
Chaos…
Mortgage rates hit a more than two-decade high last week, exacerbating creeping financial troubles for many would-be buyers.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.31%, jumping from 7.19%. A year ago at this time, the 30-year FRM averaged 6.70%.
The 15-year fixed-rate rose to 6.72% from 6.54%. A year ago, it averaged 5.96%
“The 30-year fixed-rate mortgage has hit the highest level since the year 2000,” Sam Khater, Freddie Mac’s Chief Economist, said.
“However, unlike the turn of the millennium, house prices today are rising alongside mortgage rates, primarily due to low inventory. These headwinds are causing both buyers and sellers to hold out for better circumstances.”
Pending home sales tanked in August, reversing…
As affordability sank in 2022, potential buyers struggled against rising fees and were denied loans for a lack of income, according to a new analysis from the Consumer Financial Protection Bureau.
Mortgage applications and originations declined last year as the market corrected from the low-rate-fueled pandemic housing boom. At the same time, affordability sunk to new lows, fees rose more than 20% YOY, and borrowers faced rising monthly costs.
“The higher interest rate environment had profound effects on the mortgage market in 2022, with borrowers paying much more in monthly payments,” CFPB Director Rohit Chopra said. “These trends are likely to continue given further increases in interest rates in 2023.”
Today, the national median payment applied for by purchase applicants…
Mortgage rates stayed above 7% again last week.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.19%, up from 7.18%. A year ago at this time, the 30-year FRM averaged 6.29%.
The 15-year fixed-rate rose to 6.54% from 6.51%. A year ago, it averaged 5.44%
“Mortgage rates continue to linger above 7% as the Federal Reserve paused their interest rate hikes,” said Sam Khater, Freddie Mac’s Chief Economist.
“Given these high rates, housing demand is cooling off and now homebuilders are feeling the effect. Builder sentiment declined for the first time in several months and construction levels have dipped to a three-year low, which could have an impact on the already low housing supply.”
August’s inventory…
Mortgage rates increased last week, and despite a two-week streak of declines, will likely remain above 7%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.18%, up from 7.12%. A year ago at this time, the 30-year FRM averaged 6.02%.
The 15-year fixed-rate mortgage slipped, however, down to 6.51% from 6.52%. A year ago, it averaged 5.21%.
“Mortgage rates inched back up this week and remain anchored north of seven percent. The reacceleration of inflation and strength in the economy is keeping mortgage rates elevated,” said Sam Khater, Freddie Mac’s Chief Economist.
The consumer price index saw its biggest monthly gain this year in August, coming in hotter than expected at +0.3% month-over-month.
This heightens the…
Mortgage applications continued to sink last week, driven by continued refinance weakness.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell by 0.8%, down slightly compared to the week prior’s 2.9% decrease.
Adjusted purchase applications actually rose by 1%, while the unadjusted index dipped 11% from the week before and was 27% lower YOY.
Refinances drove the decline, dropping 5% and seeing their weakest levels since the beginning of this year. They currently make up 29.1% of total applications. In the past decade, refis averaged 58% of total activity.
The refi downturn led to the seventh dip in applications in eight weeks and their lowest levels since…
Mortgage activity dipped in August as rates reached new highs and inventory remained low, according to Black Knight’s latest Mortgage Monitor report.
The 30-year conforming soared above 7.25% last month, its highest level in more than 20 years, before cooling down to 7.07%.
As a result, overall rate lock volumes sank for a third straight month, down 1.5% from July.
“August was another rough month for mortgage borrowers from an interest rate perspective,” said Andy Walden, VP of enterprise research and strategy at Black Knight. “Rates did edge down toward the end of August, but prospective homebuyers still face the least affordable housing market in nearly 40 years.”
The biggest driver was purchase volume, which fell almost a full 2%…
Mortgage rates dipped again last week but remain above the dreaded 7% threshold.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.12%, down from 7.18%. A year ago at this time, the 30-year FRM averaged 5.89%.
This is the second week of declines but the fourth straight week of 7%-plus rates.
The 15-year fixed-rate mortgage slipped to 6.52% from 6.55%. A year ago, it averaged 5.16%.
“The economy remains buoyant, which is encouraging for consumers. Though while inflation has decelerated, firmer economic data have put upward pressure on mortgage rates which, in the face of affordability challenges, are straining potential homebuyers,” said Sam Khater, Freddie Mac’s Chief Economist.
The median U.S. home sale price is up…
