Mortgage Apps Buck Recent Trend Despite Huge Rate Jump

Mortgage application volume increased during the week ended June 10 after four straight weeks of declines. However, the overall gains shown by data from the Mortgage Bankers Association’s (MBA’s) weekly Mortgage Applications Survey was only a resumption of application activity patterns two weeks earlier. The business week ended June 3 was shorted by the Memorial Day holiday. MBA’s Market Composite Index, a measure of loan application volume, increased 6.6 percent on a seasonally adjusted basis after declining 6a.5 percent the previous week. On an unadjusted basis, the Index increased 17 percent, identical to its decline the previous week. The Refinance Index increased 4 percent from the previous week but was 76 percent lower than the same week in 2021. The seasonally adjusted Purchase Index rose 8 percent from one week earlier and was up 18 percent on an unadjusted basis. The Index remains down 16 percent from the same week one year ago. The last time the Purchase Index rose year-over-year was in May 2021. [refiappschart] [purchaseappschart] According to Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, "Mortgage rates increased for all loan types, with the 30-year fixed rate last week jumping 25 basis points to 5.65 percent – the highest level since 2008. Mortgage rates followed Treasury yields up in response to higher-than-expected inflation and anticipation that the Federal Reserve will need to raise rates at a faster pace. Despite the increase in rates, application activity rebounded following the Memorial Day holiday week but remained 0.29 percent below pre-holiday levels. With mortgage rates well above 5 percent, refinance activity continues to run more than 70 percent lower than last year.”

June 15, 2022 Download our Mobile App: Download our Mobile App: Housing News Mortgage Apps Buck Recent Trend Despite Huge Rate Jump Mortgage application volume increased during the week ended June 10 after four straight weeks of declines. However, the overall gains shown by data from the Mortgage Bankers Association’s (MBA’s) weekly Mortgage Applications Survey was only a resumpt... (read more) MBS Commentary MBS Live Morning: Traders in Position For Today's Fed Announcement. Volatility Guaranteed It's hard to think of too many other Fed announcements with more potential volatility than today's. 4 short business days ago, the market knew exactly how much the Fed would hike and we had a very good idea of what the Fed would generally say.&... (read more) Rob Chrisman Non-Agency, Appraisal, Loan Delivery Products; June and July Events; Expect a 75 bp Move Higher From the Fed “Do you know that humans eat more bananas than monkeys? Think about it, when was the last time you ate a monkey?” Words and terms are important. At this point, any company not having layoffs, reductions in force, or “right-sizing” (such a PC term) ma... (read more) Mortgage Rates Mortgage Rates Continue Higher Into The 6's 30 Yr. Fixed Rate 6.22% -0.06% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.22% -0.06 0.40 15 Yr. Fixed 5.38% -0.07 0.00 30 Yr. FHA 5.62% -0.13 0.00 30 Yr. Jumbo 5.15% -0.10 0.00 5/1 ARM 5.62% +0.12 0.50 30 Yr. VA 5.65% -0.22 0.00 Updates Daily - Last Update: 6/15 15 Yr. Fixed Rate 5.38% -0.07% Rate Change Points Freddie Mac 30 Yr. Fixed 5.10% -0.15 0.90 15 Yr. Fixed 4.31% -0.12 0.80 5/1 Yr. ARM 4.20% +0.12 0.30 Updates Weekly - Last Update: 5/26 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 5.33% -0.13 0.51 15 Yr. Fixed 4.72% 0.00 0.63 30 Yr. Jumbo 4.93% -0.09 0.41 Updates Weekly - Last Update: 6/1 MBS / Treasuries MBS Live Morning: Traders in Position For Today's Fed Announcement. Volatility Guaranteed UMBS 30YR 4.5 99.45 +1.20 Price / Yield Change MBS UMBS 4.5 99.45 +1.20 UMBS 5.0 101.20 +1.08 GNMA 4.5 100.98 +1.09 GNMA 5.0 102.50 +0.91 Pricing as of: 6/15 5:21PM EST 10 Year US Treasury 3.2915 -0.1876 Price / Yield Change US Treasury 2 YR Treasury 3.210 -0.230 5 YR Treasury 3.375 -0.226 7 YR Treasury 3.377 -0.206 10 YR Treasury 3.292 -0.188 30 YR Treasury 3.330 -0.101 Pricing as of: 6/15 5:21PM EST Latest Video The Fed certainly could raise rates by 75 bps but I expect it's still 50 bp... The 9am Bond Report: June 15, 2022 Compass and Redfin announce layoffs amid slowing home sales The Fed is entirely focused on crushing inflation, says JPMorgan's Michael ... Around the Web CNBC Powell says the Fed could hike rates by 0.75 percentage point again in July CNBC Fed hikes its benchmark interest rate by three-quarters of a point, the biggest increase since 1994 Calculated Risk Blog NAHB: Builder Confidence Decreased to 67 in June; "Traffic of prospective buyers" Falls below Breakeven Calculated Risk Blog FOMC Projections and Press Conference CNBC Fed members predict more hikes with the benchmark rate above 3% by year-end CNBC Here's everything the Fed is expected to announce, including the biggest rate hike in 28 years CNBC Real estate firms Compass and Redfin announce layoffs as housing market slows Realtor.com U.S. Home Equity Hits Highest Level on Record$27.8 Trillion Calculated Risk Blog Retail Sales Decreased 0.3% in May Reuters ECB meets to tackle rout in bond market amid echoes of debt crisis Reuters European stocks jump as ECB holds surprise meeting CNBC European Central Bank to create new tool to address fragmentation risk after bond yields surge CNBC Real estate firms Compass and Redfin announce layoffs as housing market slows

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