Purchase Applications Rise on Threshold of Fed Meeting

The volume of mortgage application submitted during the week ended April 29 ended a seven-week slide. The Mortgage Bankers Association (MBA) said purchase applications were substantially higher than the prior week while refinance applications held their own. MBA’s Market Composite Index, a measure of application volume, increased 2.5 percent on a seasonally adjusted basis from the prior week and was up 3.0 percent higher on an unadjusted basis. Refinancing has fallen by 71 percent since the comparable week in 2021. [refiappschart] The seasonally adjusted and unadjusted Purchase Indices increased by 4 percent and 5 percent respectively from one week earlier. Purchase applications were down 11 percent year-over-year. [purchaseappschart] Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting commented that, “Treasury yields eased slightly last week but remained close to 2018 highs, as financial markets await the news from the Federal Reserve on its latest plans for rate hikes and reducing its balance sheet holdings. The 30-year fixed rate was 5.36 percent, up over two percentage points from a year ago. The 127-basis point jump in rates over the past two months has triggered a 49 percent drop in refinance activity.” “The purchase market remains challenged by low levels of housing inventory and rapid home-price gains, as well as the affordability hit from higher mortgage rates that are forcing prospective buyers to factor in higher monthly payments. ” But, Kan concluded, “Purchase applications increased for conventional, FHA, and VA loans and were up 4 percent overall. This is potentially a good sign for the spring home buying season, which has seen a slow start thus far.”

May 4, 2022 Download our Mobile App: Download our Mobile App: Housing News Purchase Applications Rise on Threshold of Fed Meeting The volume of mortgage application submitted during the week ended April 29 ended a seven-week slide. The Mortgage Bankers Association (MBA) said purchase applications were substantially higher than the prior week while refinance applications held th... (read more) MBS Commentary MBS Live Morning: 50bp Hike, Normalization Details, And an Important Powell Press Conference At the risk of repeating too many words from yesterday's recap, we'll leave it at this: the Fed will hike by 50bps today. It won't be a surprise to the market. The Fed will also almost certainly announce a plan to reduce bond holdings wit... (read more) Mortgage Rate Watch Mortgage Rates Started Higher, But Improved After Fed Announcement Today brought the much-anticipated policy announcement from the Federal Reserve. Many people mistakenly believe that the Fed's present day decisions to hike/cut its policy rate (the "Fed Funds Rate") are important to financial markets, but by t... (read more) Rob Chrisman Servicing, Automation, Processing, Sales Tools; Non-QM and Jumbo investor News May the 4th be with you! Without the lisp, there are many forces tugging at lenders and vendors. Forget 2020 and 2021. Recruiters are asking LOs what their numbers were in 2018 and 2019. Prequals are running amok, and with them costs for any vendor s... (read more) Mortgage Rates Mortgage Rates Started Higher, But Improved After Fed Announcement 30 Yr. Fixed Rate 5.50% -0.04% Rate Change Points Mortgage News Daily 30 Yr. Fixed 5.50% -0.04 0.40 15 Yr. Fixed 4.88% 0.00 0.40 30 Yr. FHA 5.12% +0.12 0.00 30 Yr. Jumbo 4.71% +0.01 0.00 5/1 ARM 4.65% +0.03 1.00 Updates Daily - Last Update: 5/4 15 Yr. Fixed Rate 4.88% +0.00% Rate Change Points Freddie Mac 30 Yr. Fixed 5.10% -0.01 0.80 15 Yr. Fixed 4.40% +0.02 0.90 5/1 Yr. ARM 3.78% +0.03 0.30 Updates Weekly - Last Update: 4/28 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 5.36% -0.01 0.63 15 Yr. Fixed 4.68% 0.00 0.76 30 Yr. Jumbo 4.92% +0.03 0.43 Updates Weekly - Last Update: 5/4 MBS / Treasuries MBS Live Morning: 50bp Hike, Normalization Details, And an Important Powell Press Conference UMBS 30YR 4.0 99.59 +0.59 Price / Yield Change MBS UMBS 4.0 99.59 +0.59 UMBS 4.5 101.75 +0.55 GNMA 4.0 100.34 +0.56 GNMA 4.5 102.00 +0.47 Pricing as of: 5/4 5:21PM EST 10 Year US Treasury 2.9480 -0.0310 Price / Yield Change US Treasury 2 YR Treasury 2.660 -0.124 5 YR Treasury 2.931 -0.096 7 YR Treasury 2.980 -0.065 10 YR Treasury 2.948 -0.031 30 YR Treasury 3.040 +0.022 Pricing as of: 5/4 5:21PM EST Latest Video A 75 basis point increase is not something we're actively considering, says... Market hasn't priced in how hawkish Fed will become, says former Fed govern... The Pre-Market Rundown 2: May 04, 2022 The 2pm Bond Report - May 3, 2022 Around the Web CNBC More Americans than ever say it's not a good time to buy a home CNBC Fed raises rates by half a percentage point the biggest hike in two decades to fight inflation Reuters Investor pessimism mounts as more Fed rate hikes loom CNBC Weekly mortgage demand rose for the first time since early March last week, but it won't last Calculated Risk Blog ISM Services Index Decreased to 57.1% in April, Employment Contracted CNBC The Fed's aggressive hiking campaign will lead to a recession, according to CNBC survey CNBC The Fed is expected to raise rates by a half point. Investors wonder if it will get more aggressive Calculated Risk Blog Rent Increases Up Sharply Year-over-year, Pace may be slowing Calculated Risk Blog Fannie REO inventory increased in Q1 year-over-year; Expected to increase further in 2022 Calculated Risk Blog Trade Deficit increased to $109.8 Billion in March Calculated Risk Blog ADP: Private Employment Increased 247,000 in April Calculated Risk Blog BLS: Job Openings at Series High 11.5 million in March Eye on Housing Slight Rise for Construction Job Openings

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