Application Volume Rises Ahead of Next Fed Move

The mortgage market disregarded a slight increase in interest rates last week. Refinance applications posted a second weekly gain, and the Purchase Mortgage Index resumed the upward trend it has pursued since early November after a small correction the previous week. The Mortgage Bankers Association (MBA) said its Market Composite Index for the week ended December 9 increased 3.2 percent on a seasonally adjusted basis. On an unadjusted basis, it was up 0.4 percent compared with the previous week. The Refinance Index was 3 percent higher week-over-week but 85 percent lower than the same week in 2021. Refinance applications made up 29.4 percent of total applications, up from 28.7 percent the previous week. [refiappschart] The seasonally adjusted Purchase Index increased 4 percent from one week earlier although the pace declined 1 percent before adjustment and was 38 percent lower than the same week a year earlier. [purchaseappschart] “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 percent, which is still close to the lowest rate in a month,” Joel Kan, MBA’s Vice President and Deputy Chief Economist said. “Overall applications increased, driven by increases in purchase and refinance activity. However, with rates more than three percentage points higher than a year ago, both purchase and refinance applications are still well behind last year’s pace .”

December 14, 2022 Download our Mobile App: Download our Mobile App: Housing News Application Volume Rises Ahead of Next Fed Move The mortgage market disregarded a slight increase in interest rates last week. Refinance applications posted a second weekly gain, and the Purchase Mortgage Index resumed the upward trend it has pursued since early November after a small correction... (read more) Mortgage Rate Watch Mortgage Rates Remain Near Recent Lows Despite Fed's Rate Hike It's often said here, but bears repeating: by the time the Fed officially announces a rate hike, that rate hike is old news and of no further consequence to financial market movement. There are exceptions for times when the hike is bigger or sm... (read more) MBS Commentary Focusing on Dots and Thoughts, Not The 0.50% Rate Hike It's Fed day and a 0.50% hike is a foregone conclusion. Markets have fully priced that in and multiple Fed speeches--including Powell 2 weeks ago--have all but confirmed that Fed is unanimously onboard with a smaller hike at today's meeting.&nb... (read more) Rob Chrisman U/W, Business Intel, Cap. Mkts., Remote Worker Compliance Tools; Non-QM, DSCR, 2nds, Commercial News Here in Southern California for the California MBA’s Legal Issues and Regulatory Compliance Conference, the topics include RESPA, marketing services agreements and Section 8(a), and compliant low income and affordable housing lending. Speaking of whi... (read more) MBS Commentary Here's What Changed in The New Fed Announcement Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic,... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.27% -0.01% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.27% -0.01 0.00 15 Yr. Fixed 5.65% -0.04 0.00 30 Yr. FHA 5.75% 0.00 0.00 30 Yr. Jumbo 5.65% -0.05 0.00 5/1 ARM 5.79% -0.01 0.00 30 Yr. VA 5.80% 0.00 0.00 Updates Daily - Last Update: 12/14 15 Yr. Fixed Rate 5.65% -0.04% Rate Change Points Freddie Mac 30 Yr. Fixed 6.33% -0.16 0.00 15 Yr. Fixed 5.67% -0.09 0.00 Updates Weekly - Last Update: 12/8 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.42% +0.01 0.64 15 Yr. Fixed 5.92% +0.08 0.54 30 Yr. Jumbo 6.14% +0.06 0.42 Updates Weekly - Last Update: 12/14 MBS / Treasuries UMBS 30YR 5.0 100.19 +0.20 Price / Yield Change MBS UMBS 5.0 100.19 +0.20 UMBS 5.5 101.48 +0.17 GNMA 5.0 100.30 +0.17 GNMA 5.5 101.28 +0.14 Pricing as of: 12/14 5:49PM EST 10 Year US Treasury 3.4790 -0.0220 Price / Yield Change US Treasury 2 YR Treasury 4.216 +0.002 5 YR Treasury 3.616 -0.030 7 YR Treasury 3.567 -0.024 10 YR Treasury 3.479 -0.022 30 YR Treasury 3.535 -0.001 Pricing as of: 12/14 5:49PM EST Latest Video The Fed continues to be much more hawkish than the market For cutting rates, it's a question of whether we're confident inflation is ... Mortgage applications rose last week on lower rates Federal Reserve raises interest rates by 50 basis points Around the Web CNBC The Fed projects raising rates as high as 5.1% before ending inflation battle Calculated Risk Blog Current State of the Housing Market; Overview for mid-December CNBC Fed raises interest rates half a point to highest level in 15 years CNBC Mortgage rates drop after CPI report, but the housing market is far from out of the woods Realtor.com The top 10 cities that offer homebuyers the most bang for their bucknone of them are in Florida CNBC When will the Federal Reserve ease its rate hikes and inflation fight? Keep an eye on your annual raise CNBC Health insurance is helping cool inflation. But 'it's not a very good reflection' of what people pay, cautions economist CNBC 10-year Treasury yield hovers below 3.5% ahead of Fed rate decision CNBC Bank of England tipped for half-point rate hike as inflation shows signs of peaking CNBC The Fed has to portray itself as tough on inflation even as it pushes through a smaller rate hike Calculated Risk Blog AIA: Architecture Billings Index Declines Further in November CNBC Here's everything the Federal Reserve is expected to do Wednesday CNBC UK inflation falls from 41-year high as fuel price surge eases

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