Mortgage Applications Decrease Again, Volatile Rates, Stagnant Inventories

The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 4.6 percent on a seasonally adjusted basis during the week ended May 19 and was 5 percent lower than the previous week on an unadjusted basis. It was the second consecutive weekly decline. The Refinance Index was down 5 percent and was 44 percent lower than the same week one year ago. The refinance share of applications was unchanged at 27.4 percent. [refiappschart] The seasonally adjusted Purchase Index fell 4 percent . The unadjusted version was 5 percent lower week-over-week and 30 percent lower on an annual basis. [purchaseappschart] “ Mortgage applications declined almost five percent last week as borrowers remained sensitive to higher rates . The 30-year fixed rate increased to 6.69 percent, the highest level since March,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Since rates have been so volatile and for-sale inventory still scarce, we have yet to see sustained growth in purchase applications. Refinance activity remains limited, with the refinance index falling to its lowest level in two months and more than 40 percent below last year’s pace.” Kan added, “Investors remained attuned to the uncertainty around the U.S. debt ceiling and communication from several Federal Reserve officials last week, which sent Treasury yields higher, along with mortgage rates. Economic data released over the past week have also pointed to a still-resilient economy. The housing market received positive data on new residential construction – which is seen as a key solution to the lack of housing inventory.”

May 24, 2023 Download our Mobile App: Download our Mobile App: Housing News Mortgage Applications Decrease Again, Volatile Rates, Stagnant Inventories The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 4.6 percent on a seasonally adjusted basis during the week ended May 19 and was 5 percent lower than the previous week on... (read more) Mortgage Rate Watch Mortgage Rates Start Lower But End Higher Wednesday was a fairly volatile day for mortgage rates. The movement wasn't extreme, but there were a few lead changes. The day began with the average lender offering just slightly lower rates compared to yesterday. As the da... (read more) MBS Commentary Today is Best Viewed as "In-Range Volatility" Today is Best Viewed as "In-Range Volatility" Bonds began the day on the back foot as UK inflation crushed forecasts. Treasuries sold in sympathy, but found their footing before the start of the US sess... (read more) Rob Chrisman Sales, DPA, QC, Appraisal, Servicing Products; Freddie and Fannie News As the MBA’s Secondary Conference in New York wraps up, and jokes are made about who actually paid for Fannie’s reception (informally titled “The Repurchase Reception,” many pointed to Fannie’s $3.8 billion income in the first quarter versus the loss... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.03% +0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.03% +0.02 0.00 15 Yr. Fixed 6.31% +0.01 0.00 30 Yr. FHA 6.65% 0.00 0.00 30 Yr. Jumbo 6.61% +0.01 0.00 5/1 ARM 6.89% +0.01 0.00 30 Yr. VA 6.64% +0.01 0.00 Updates Daily - Last Update: 5/24 15 Yr. Fixed Rate 6.31% +0.01% Rate Change Points Freddie Mac 30 Yr. Fixed 6.39% +0.04 0.00 15 Yr. Fixed 5.75% 0.00 0.00 Updates Weekly - Last Update: 5/18 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.57% +0.09 0.61 15 Yr. Fixed 5.96% +0.05 0.68 30 Yr. Jumbo 6.46% +0.13 0.38 Updates Weekly - Last Update: 5/17 MBS / Treasuries UMBS 30YR 5.0 97.89 -0.42 Price / Yield Change MBS UMBS 5.0 97.89 -0.42 UMBS 5.5 99.48 -0.36 GNMA 5.0 98.11 -0.45 GNMA 5.5 99.44 -0.38 Pricing as of: 5/24 5:31PM EST 10 Year US Treasury 3.7460 +0.0480 Price / Yield Change US Treasury 2 YR Treasury 4.380 +0.060 5 YR Treasury 3.822 +0.079 7 YR Treasury 3.784 +0.070 10 YR Treasury 3.746 +0.048 30 YR Treasury 3.988 +0.036 Pricing as of: 5/24 5:31PM EST Latest Video Fed minutes show that a June hike remains a close call, says BofA's Aditya ... Mortgage rates are adding more stress to already hurt office REITs, says Pe... Fed officials less confident on the need for more rate hikes, minutes show Fed Governor Waller is concerned about the lack of clear progress on inflat... Around the Web Federal Reserve Fed Minutes Calculated Risk Blog FOMC Minutes: Staff Predicts Recession Starting in Q4; Future Monetary Policy "less certain" Calculated Risk Blog Two Key Housing Themes: Low Inventory and Few Distressed Sales Reuters UK bond yields spike after inflation shock Calculated Risk Blog New Home Sales at 683,000 Annual Rate in April; Median New Home Price is Down 15.3% from the Peak Reuters US money market fund assets hit record highs despite debt-ceiling fears CNBC BlackRock bond chief Rieder says U.S. economy in 'much better shape than doomsayers say CNBC Former Fed Chair Ben Bernanke says there's more work ahead to control inflation Eye on Housing Multifamily Missing Middle Flat at Start of 2023 Calculated Risk Blog New Home Sales at 683,000 Annual Rate in April Calculated Risk Blog AIA: Architecture Billings Decreased in April CNBC Treasury yields hold steady as investors closely follow debt ceiling negotiations, await key economic reports Reuters Euro zone bond yields hit one-month high as rate hike bets rise

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