Mortgage Applications Slow Their Pace, But Rates Should Help Soon

Mortgage activity slowed significantly last week, pulling the Mortgage Bankers Association’s (MBA’s) Market Composite lower after three weeks of gains. The Index, a measure of loan application volume, decreased 9.0 percent on a seasonally adjusted basis during the week ended January 27. It did, however, increase 6 percent on a non-seasonally adjusted basis. The Refinance Index dropped 7 percent from the previous week and was 80 percent lower than the same week one year ago. The refinance share of applications dipped to 31.2 percent from 31.9 percent the previous week. [refiappschart] The same pattern prevailed for home purchase loans. The seasonally adjusted Purchase Index decreased 10 percent but was up 7 percent before adjustment. The Index is 41 percent lower than it was during the same week in 2022. [purchaseappschart] “Mortgage rates declined for the fourth straight week and have now fallen almost 40 basis points over the past month, according to Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Treasury yields were higher on average last week, while mortgage rates decreased, which was a sign of a narrowing spread between the two, he said. “The spread between mortgage rates and the 10-year Treasury has been abnormally wide since early 2022. Further narrowing of that spread is expected to put downward pressure on mortgage rates in the coming months. Overall application activity declined last week despite lower rates, which is an indication of the still volatile time of the year for housing activity. Purchase activity is expected to pick up as the spring homebuying season gets underway, bolstered by lower rates and moderating home-price growth. Both trends will help some buyers regain purchasing power.”

February 1, 2023 Download our Mobile App: Download our Mobile App: Housing News Mortgage Applications Slow Their Pace, But Rates Should Help Soon Mortgage activity slowed significantly last week, pulling the Mortgage Bankers Association’s (MBA’s) Market Composite lower after three weeks of gains. The Index, a measure of loan application volume, decreased 9.0 percent on a seasonally adjusted b... (read more) Mortgage Rate Watch Fed Hikes Rates. Mortgage Rates Drop. Here's How That Works For some, this will be old hat. For others, there's a mystifying dynamic that demands explanation. The confusion stems from years of being conditioned to believe that when the Fed "hikes" or "cuts" rates that mortgage rates move according... (read more) MBS Commentary Markets Surprisingly Surprised by Unsurprising Powell Comments Markets Surprisingly Surprised by Unsurprising Powell Comments We were pretty sure we knew what Powell would generally say in today's press conference. He turned out to be generally predictable. A... (read more) Rob Chrisman U/W, PPE, Marketing, Compliance Products; House Price Stats Dissected; Vendor Monopolies I’ve never seen my cat Myrtle fly commercial. That aside, time “flies” by, Tom Brady retired again, and here’s a trivia question for your friends and family: how many 747’s did Boeing produce before the last one rolled off the assembly line yesterday... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.04% -0.13% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.04% -0.13 0.00 15 Yr. Fixed 5.20% -0.04 0.00 30 Yr. FHA 5.62% -0.13 0.00 30 Yr. Jumbo 5.68% -0.02 0.00 5/1 ARM 6.25% -0.05 0.00 30 Yr. VA 5.68% -0.14 0.00 Updates Daily - Last Update: 2/1 15 Yr. Fixed Rate 5.20% -0.04% Rate Change Points Freddie Mac 30 Yr. Fixed 6.13% -0.02 0.00 15 Yr. Fixed 5.17% -0.11 0.00 Updates Weekly - Last Update: 1/26 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.19% -0.01 0.65 15 Yr. Fixed 5.50% -0.04 0.73 30 Yr. Jumbo 5.99% +0.07 0.48 Updates Weekly - Last Update: 2/1 MBS / Treasuries UMBS 30YR 5.0 100.66 +0.36 Price / Yield Change MBS UMBS 5.0 100.66 +0.36 UMBS 5.5 101.73 +0.23 GNMA 5.0 100.92 +0.31 GNMA 5.5 101.66 +0.13 Pricing as of: 2/1 5:31PM EST 10 Year US Treasury 3.4221 -0.0899 Price / Yield Change US Treasury 2 YR Treasury 4.115 -0.090 5 YR Treasury 3.521 -0.098 7 YR Treasury 3.476 -0.098 10 YR Treasury 3.422 -0.090 30 YR Treasury 3.569 -0.066 Pricing as of: 2/1 5:31PM EST Latest Video The Fed's next decision could hurt mortgage rates Fed Chair Powell: Given our outlook, I don't see us cutting rates this year Fed Chair Powell: Disinflationary process has started for the first time Fed Chair Powell: It's Congress's job to raise the debt ceiling, we're not ... Around the Web CNBC Fed raises rates a quarter point, expects 'ongoing' increases Eye on Housing Unaffordable Prices Are Back on Top as Most Common Reason Buyers Cant Make Purchase NMHC Rents Continue to Fall as Apartment Market Loosens, Transactions Pull Back Due to Higher Interest Rates CNBC Why the case is growing for a Federal Reserve interest rate cut before year end CNBC Private payroll growth slowed to 106,000 in January as weather hit hiring, ADP says Eye on Housing Fewer Prospective Buyers Are Fully Engaged in Purchase Process Calculated Risk Blog Case-Shiller: National House Price Index "Continued to Decline" to 7.7% year-over-year increase in November Eye on Housing Fourth Quarter of 2022 Homeownership Rate at 65.9% Eye on Housing December Private Residential Spending Dips Calculated Risk Blog Construction Spending Decreased 0.4% in December CNBC Treasury yields decline as investors await Fed meeting Calculated Risk Blog Comments on November Case-Shiller and FHFA House Prices Wall Street Journal Eurozone Inflation Eases for Third Month as ECB Rate Rises Bite

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