Mortgage Application Volume Responds Quickly to Recent Rate Drop

Mortgage applications increased last week for the fifth time in six weeks. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, increased 5.3 percent on a seasonally adjusted basis compared to the previous week and was up 6.0 percent before adjustment. Applications for home purchases accounted for nearly all of the gains, but the Refinance Index did eke out a 0.1 percent increase. Refinance activity is now 57 percent lower than the same week one year ago. Refinancing accounted for 27.0 percent of applications compared to 28.6 percent during the last week of March. [refiappschart] The seasonally adjusted Purchase Index increased 8.0 percent and was 9.0 percent higher on an unadjusted basis. The unadjusted index was 31 percent lower than in the first week of April in 2022. [purchaseappschart] “Incoming data last week showed that the job market is beginning to slow, which led to the 30-year fixed rate decreasing to 6.30 percent – the lowest level in two months,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Prospective homebuyers this year have been quite sensitive to any drop in mortgage rates, and that played out last week with purchase applications increasing by 8 percent. Refinance application volume was a mixed bag with total volume essentially flat, conventional volume down for the week, but VA refinance volume increasing. The level of refinance activity remains almost 60 percent below last year, as most homeowners are currently locked in at much lower rates.”

April 12, 2023 Download our Mobile App: Download our Mobile App: Housing News Mortgage Application Volume Responds Quickly to Recent Rate Drop Mortgage applications increased last week for the fifth time in six weeks. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, increased 5.3 percent on a seasonally adjusted basis c... (read more) Mortgage Rate Watch Mortgage Rates Recover After Inflation Data Matched Forecasts If we could only blame one thing for the huge jump in interest rates seen since early 2022, it would be inflation. That fact led to a high degree of focus on reports like today's Consumer Price Index (CPI), which is unequivocally the most relev... (read more) MBS Commentary Mixed Reactions to CPI and Fed Minutes Mixed Reactions to CPI and Fed Minutes This morning's "as-expected" inflation data was very well received by the bond market. In other words, it resulted in a much bigger rally than the results would ha... (read more) Rob Chrisman App Auditing, Non-QM, Processing, Payment Deferral Tools; Conv. Conforming News; Consumer Price Data This morning I head from Seattle to Atlanta for some MBA/STRATMOR Peer Group meetings. Seattle has its share of hipsters, and sometimes one needs a translator to figure out what they’re talking about. The Urban Dictionary defines, “Situationship” as,... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.42% -0.10% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.42% -0.10 0.00 15 Yr. Fixed 5.88% -0.05 0.00 30 Yr. FHA 6.00% -0.17 0.00 30 Yr. Jumbo 5.96% -0.04 0.00 5/1 ARM 6.62% -0.08 0.00 30 Yr. VA 6.05% -0.20 0.00 Updates Daily - Last Update: 4/12 15 Yr. Fixed Rate 5.88% -0.05% Rate Change Points Freddie Mac 30 Yr. Fixed 6.28% -0.04 0.00 15 Yr. Fixed 5.64% +0.08 0.00 Updates Weekly - Last Update: 4/6 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.30% -0.10 0.55 15 Yr. Fixed 5.78% -0.19 0.57 30 Yr. Jumbo 6.26% -0.10 0.42 Updates Weekly - Last Update: 4/12 MBS / Treasuries UMBS 30YR 5.0 99.84 +0.25 Price / Yield Change MBS UMBS 5.0 99.84 +0.25 UMBS 5.5 101.05 +0.23 GNMA 5.0 100.03 +0.23 GNMA 5.5 100.95 +0.19 Pricing as of: 4/12 5:31PM EST 10 Year US Treasury 3.3943 -0.0377 Price / Yield Change US Treasury 2 YR Treasury 3.962 -0.071 5 YR Treasury 3.466 -0.069 7 YR Treasury 3.428 -0.054 10 YR Treasury 3.394 -0.038 30 YR Treasury 3.627 +0.002 Pricing as of: 4/12 5:31PM EST Latest Video Fed minutes: Bank turmoil effects will likely lead to recession later in 20... Inflation rises 0.1% in March, less than expected There's still more to do to get core inflation where we'd like it to be, sa... Mortgage rates dip slightly following latest CPI report Around the Web CNBC Fed expects banking crisis to cause a recession this year, minutes show CNBC Inflation rises 0.1% in March, less than expected Calculated Risk Blog FOMC Minutes: "some additional policy firming may be appropriate"; Staff Predicts Recession Calculated Risk Blog Cleveland Fed: Median CPI increased 0.4% and Trimmed-mean CPI increased 0.2% in March Calculated Risk Blog Remote Work and Household Formation Calculated Risk Blog YoY Measures of Inflation: Services, Goods and Shelter Calculated Risk Blog 2nd Look at Local Housing Markets in March Eye on Housing Nonrevolving Debt Increases as Auto Loan Rates Surge Reuters Fed's Goolsbee: Prudence, patience needed on rate hikes CNBC Treasury yields mixed as investors await key inflation data, Fed minutes Calculated Risk Blog More Employment Graphs: Duration of Unemployment, Unemployment by Education, Diffusion Indexes CNBC IMF cuts GDP forecasts, says global economy heading for weakest growth since 1990 Reuters Central Europe's policymakers double down on hawkish message

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