Higher Rates Suppress Mortgage Application Volume

Mortgage applications declined slightly on a seasonally adjusted basis last week but plummeted on an unadjusted basis during the July 4th week. The week’s results include an additional adjustment to account for the holiday. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 0.2 percent on a seasonally adjusted basis from one week earlier but lost 20.0 percent before adjustment. The Refinance Index decreased 2.0 percent from the previous week but was 28.0 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 34.9 percent of total applications from the previous 35.7 percent. [refiappschart] The seasonally adjusted Purchase Index managed a 1.0 percent gain while the unadjusted Purchase Index dropped 19.0 percent. The purchase index was 13.0 percent lower than the same week one year ago. [purchaseappschart] “The recent uptick in mortgage rates has slowed demand. Mortgage applications were essentially flat last week, as mortgage rates remained around 7 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Purchase activity picked up slightly, driven primarily by increases in FHA and VA applications. Refinance applications decreased for the fourth consecutive week, in line with higher rates. Although home equity gains have been significant in recent years, most borrowers do not have much of an incentive to refinance at current rates. ”

July 10, 2024 Download our Mobile App: Download our Mobile App: Housing News Higher Rates Suppress Mortgage Application Volume Mortgage applications declined slightly on a seasonally adjusted basis last week but plummeted on an unadjusted basis during the July 4th week. The week’s results include an additional adjustment to account for the holiday. The Mortgage Bankers Asso... (read more) MBS Commentary No New Inspiration Ahead of Thursday's CPI No New Inspiration Ahead of Thursday's CPI We've officially run out of ways to characterize the boring, sideways grind in the bond market that's been intact since last Friday afternoon. One would think ... (read more) Mortgage Rate Watch Mortgage Rates Tick Back Below 7.0%, But Just Barely Mortgage rates have been in a narrow range for more than a month now with the average top tier 30yr fixed rate staying within striking distance of the 7.0% mark for the entirety. The number was 7.01 yesterday and it's down to 6.99 today. This m... (read more) Rob Chrisman Best Efforts Trading, DPA Options, Marketing, Dashboard, Online App Tools; Correspondent and Wholesale Products “The only time I get asked for sex is on application forms.” Ba-dum-ching! Speaking of applications, most lenders will agree that the loan officer should be the first point of contact for a home buyer, not the real estate agent. But over the years re... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.99% -0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.99% -0.02 0.00 15 Yr. Fixed 6.39% -0.01 0.00 30 Yr. FHA 6.47% -0.02 0.00 30 Yr. Jumbo 7.21% -0.01 0.00 7/6 SOFR ARM 6.95% -0.07 0.00 30 Yr. VA 6.49% -0.01 0.00 Updates Daily - Last Update: 7/10 15 Yr. Fixed Rate 6.39% -0.01% Rate Change Points Freddie Mac 30 Yr. Fixed 6.95% +0.09 0.00 15 Yr. Fixed 6.25% +0.09 0.00 Updates Weekly - Last Update: 7/3 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.03% +0.09 0.62 15 Yr. Fixed 6.56% +0.09 0.54 30 Yr. Jumbo 7.11% -0.01 0.50 Updates Weekly - Last Update: 7/3 MBS / Treasuries UMBS 30YR 6.0 100.72 +0.05 Price / Yield Change MBS UMBS 6.0 100.72 +0.05 UMBS 6.5 102.05 0.00 GNMA 6.0 100.74 +0.01 GNMA 6.5 101.49 -0.05 Pricing as of: 7/10 5:31PM EST 10 Year US Treasury 4.2812 -0.0157 Price / Yield Change US Treasury 2 YR Treasury 4.621 -0.007 5 YR Treasury 4.237 -0.006 7 YR Treasury 4.241 -0.009 10 YR Treasury 4.281 -0.016 30 YR Treasury 4.470 -0.021 Pricing as of: 7/10 5:31PM EST Latest Video Powell 'sets table' for rate cut before 2% inflation target Fed Chair Powell: Want to be more confident that inflation is moving sustai... Fed Chair Powell: 'It's on the central bank' to tame inflation Falling lumber costs may bring homebuilding cost relief, says BofA's Rafe J... Around the Web forexlive We're not exiting the period in which rate hikes hurt; we're entering it Marketwatch Lumber prices are at record lows what that means for buyers and homebuilders Marketwatch Jobs report is exaggerating U.S. employment gains. What is going on? Calculated Risk Blog Leading Index for Commercial Real Estate Increased 10% in June Eye on Housing Lot Values Trend Higher CNBC Watch Fed Chair Jerome Powell testify live before House financial services panel Calculated Risk Blog 1st Look at Local Housing Markets in June CNBC Treasury yields retreat as Fed Chair warns on keeping rates elevated for too long Calculated Risk Blog Wholesale Used Car Prices Declined in June; Down 8.9% Year-over-year CNBC Watch Fed Chair Jerome Powell testify live before Senate banking panel CNBC Fed Chair Powell says holding rates high for too long could jeopardize economic growth Calculated Risk Blog Fed Chair Powell: Semiannual Monetary Policy Report to the Congress CNBC Oil prices hold firm as OPEC sees solid demand on stronger economic growth this year

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