Mortgage Applications Still Contracting, But at a Slower Pace

Today's weekly mortgage application survey from the Mortgage Bankers Association (MBA) was fairly unsurprising in that applications declined, but at a slightly slower pace compared to recent weeks. The moderation in the pace makes sense for a few reasons. First off, refi applications are near their historical lower boundary. Secondly, interest rates have improved noticeably in each of the past 2 weeks. It's not that this drop in rates is going to reinvigorate the refi market, by any means. Rather, it simply helps maintain the interest of those buyers or refi candidates who were on a fence due to rates. The dotted lines in the chart below show the current levels for rates and applications. Applications fell only 1.2 percent overall on a seasonally adjusted basis. The refi index fell 4% and the purchase index essentially sidestepped with a 0.2 percent decline (note: the component indices don't line up with the overall number due to the higher volume of purchase applications at the moment). Other highlights: Refis accounted for 32.3% of the total vs 33.0% previously ARMs accounted fir 9.4% of the total No major changes in FHA/VA/USDA market share Jumbo rates continue running about 0.45% lower than conventional rates MBA's press release

May 25, 2022 Download our Mobile App: Download our Mobile App: Housing News Mortgage Applications Still Contracting, But at a Slower Pace Today's weekly mortgage application survey from the Mortgage Bankers Association (MBA) was fairly unsurprising in that applications declined, but at a slightly slower pace compared to recent weeks. The moderation in the pace makes sense for a f... (read more) MBS Commentary MBS Live Morning: What Can Today's Fed Minutes Tell Us That We Don't Already Know? In the run up to the most recent Fed announcement, the 50bp rate hike was a foregone conclusion. There was some uncertainty about how the Fed would announce balance sheet normalization, but there too, they stuck to the script. With normal... (read more) Rob Chrisman Capital Markets, Purchase Advice Products; Investor Agency Changes; Rates Hit Housing; IMB Costs Head Higher All the stories that could be told, and so many that have yet to happen. And now 19 that never will be. It is very hard to go about one’s day, whether one has children or not, or a teacher in their family as I do, or not, given what happened in Uvald... (read more) Mortgage Rates Lowest Rates in More Than a Month 30 Yr. Fixed Rate 5.27% -0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 5.27% -0.02 0.40 15 Yr. Fixed 4.73% -0.02 0.40 30 Yr. FHA 4.70% -0.05 0.00 30 Yr. Jumbo 4.67% -0.01 0.00 5/1 ARM 4.46% 0.00 0.50 Updates Daily - Last Update: 5/25 15 Yr. Fixed Rate 4.73% -0.02% Rate Change Points Freddie Mac 30 Yr. Fixed 5.25% -0.02 0.90 15 Yr. Fixed 4.43% -0.09 0.90 5/1 Yr. ARM 4.08% +0.12 0.20 Updates Weekly - Last Update: 5/19 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 5.49% -0.04 0.74 15 Yr. Fixed 4.73% -0.06 0.82 30 Yr. Jumbo 5.03% -0.05 0.61 Updates Weekly - Last Update: 5/18 MBS / Treasuries MBS Live Morning: What Can Today's Fed Minutes Tell Us That We Don't Already Know? UMBS 30YR 4.0 100.33 +0.13 Price / Yield Change MBS UMBS 4.0 100.33 +0.13 UMBS 4.5 101.94 +0.20 GNMA 4.0 101.20 +0.16 GNMA 4.5 102.36 +0.20 Pricing as of: 5/25 5:21PM EST 10 Year US Treasury 2.7506 -0.0036 Price / Yield Change US Treasury 2 YR Treasury 2.498 +0.017 5 YR Treasury 2.724 -0.019 7 YR Treasury 2.765 -0.016 10 YR Treasury 2.751 -0.004 30 YR Treasury 2.976 +0.006 Pricing as of: 5/25 5:21PM EST Latest Video Housing market isn't going to crash, a plateau is more likely 50 basis point increase likely at next couple meetings, according to Fed mi... The 9am Bond Report - May 25, 2022 U.S. durable goods orders rise 0.4% in April Around the Web CNBC Fed minutes point to more rate hikes quicker than the market anticipates Realtor.com The Red-Hot U.S. Housing Market Finally Offers Hope for Buyers and Sellers, According to This Real-Estate Economist CNBC Mortgage demand slides further, even as interest rates pull back slightly Eye on Housing New Single-Family Home Size Trends Calculated Risk Blog New Home Sales Decrease Sharply to 591,000 Annual Rate in April Federal Reserve Minutes of the Federal Open Market Committee, May 3-4,2022 Calculated Risk Blog The Household Mystery: Part II Eye on Housing Missing Middle Construction Still Missing Calculated Risk Blog Final Look at Local Housing Markets in April Calculated Risk Blog FDIC: Problem Banks Declined, Residential REO Increased Slightly in Q1 2022 CNBC ECB rate hikes in July and September are likely a done deal, France's Villeroy says CNBC Treasury yields fall as investors monitor economic data CNBC Treasury yields fall as investors remain cautious following stock sell-off

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