Refinancing Perks Up as Rates Drop

Double-digit declines in many mortgage rates helped revive interest in refinancing last week and a subsequent increase in the Mortgage Bankers Association’s (MBA’s) Market Composite Index. The Index, a measure of application volume, rose 2.8 percent on a seasonally adjusted basis. Before adjustment, the Index was up 43 percent, due in large part to a rebound from Thanksgiving week. MBA said applications for refinancing were 14 percent higher than the previous week and 10 percent above the activity during the same week in 2022. The refinance share of applications reached 34.7 percent of total applications, up from 30.6 percent the previous week. [refiappschart] The seasonally adjusted Purchase Index slipped by 0.3 percent from one week earlier but was up 35 percent on an unadjusted basis. It was 17 percent lower than the same week one year ago. [purchaseappschart] “Mortgage rates declined last week, with the 30-year fixed-rate mortgage falling to 7.17 percent – the lowest level since August 2023. Slower inflation and financial markets anticipating the potential end of the Fed’s hiking cycle are both behind the recent decline in rates,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Refinance applications saw the strongest week in two months and increased on a year-over-year basis for the second consecutive week for the first time since late 2021. The overall level of refinance applications is still very low, but recent increases could signal that 2023 was the low point in this cycle for refinance activity, consistent with our originations forecast. Purchase applications remained 17 percent lower than a year ago, held back by low inventory and still-challenging affordability conditions.”

December 6, 2023 Download our Mobile App: Download our Mobile App: Housing News Refinancing Perks Up as Rates Drop Double-digit declines in many mortgage rates helped revive interest in refinancing last week and a subsequent increase in the Mortgage Bankers Association’s (MBA’s) Market Composite Index. The Index, a measure of application volume, rose 2.8 percent ... (read more) Mortgage Rate Watch Another Day, Another 4-Month Low Mortgage rates are hitting lower milestones like it's their nine to five recently and today was just another day at the office. The average lender was only modestly lower versus yesterday, but since yesterday was effectively a 4 month low, toda... (read more) MBS Commentary Steadily Weaker Data Keeping Steady Rally Intact Another day, another set of economic reports that offer no objections to the steady bond market rally of the past few weeks. Yesterday's heavy lifting came courtesy of JOLTS (job openings). Today's was more of a team effort with ADP emplo... (read more) Rob Chrisman Broker and Correspondent Products, Tax, Lead-Gen, Fee Collection, Pre-Qual Tools; Economist Interview; Early Payoff Fears Yesterday I was driving across Northern California to the coast (Gualala), and in Sacramento I asked the McDonald’s drive-through clerk (hey, only the best for me!) why the medium French fries were 30 cents more than the double cheeseburger ($4.29 ve... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.04% -0.04% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.04% -0.04 0.00 15 Yr. Fixed 6.48% -0.02 0.00 30 Yr. FHA 6.38% -0.02 0.00 30 Yr. Jumbo 7.55% 0.00 0.00 5/1 ARM 6.65% -0.03 0.00 30 Yr. VA 6.38% -0.03 0.00 Updates Daily - Last Update: 12/6 15 Yr. Fixed Rate 6.48% -0.02% Rate Change Points Freddie Mac 30 Yr. Fixed 7.22% -0.07 0.00 15 Yr. Fixed 6.56% -0.11 0.00 Updates Weekly - Last Update: 11/30 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.37% -0.04 0.64 15 Yr. Fixed 6.88% -0.01 0.52 30 Yr. Jumbo 7.54% +0.03 0.62 Updates Weekly - Last Update: 11/29 MBS / Treasuries UMBS 30YR 5.5 99.47 +0.17 Price / Yield Change MBS UMBS 5.5 99.47 +0.17 UMBS 6.0 100.91 +0.08 GNMA 5.5 100.06 +0.13 GNMA 6.0 101.22 +0.06 Pricing as of: 12/6 5:31PM EST 10 Year US Treasury 4.1130 -0.0540 Price / Yield Change US Treasury 2 YR Treasury 4.597 +0.018 5 YR Treasury 4.109 -0.028 7 YR Treasury 4.147 -0.042 10 YR Treasury 4.113 -0.054 30 YR Treasury 4.219 -0.079 Pricing as of: 12/6 5:31PM EST Latest Video Private payrolls increased by 103,000 in November, below expectations, ADP ... Unit labor costs fell while productivity surged in Q3, report shows Bank CEOs criticize newly proposed capital rules in Senate hearing Walmart CEO: Customers are really price-sensitive right now Around the Web Reuters Ten-year yields hit three-month lows, concerns for weak jobs report Calculated Risk Blog 1st Look at Local Housing Markets in November with Comparison to 2019 CNBC Biden administration to forgive $4.8 billion in student loan debt for 80,300 borrowers CNBC High mortgage rates have limited opportunities for homebuyers and sellers. How that may change in 2024 CNBC Private payrolls increased by 103,000 in November, below expectations, ADP says CNBC Bank of England warns that higher rates 'have yet to come through' to an already weak economy CNBC Walmart CEO says consumers may not be as resilient next year, even as deflation starts to show CNBC Job openings slide to 8.7 million in October, well below estimate Marketwatch Bond market signals a swift U.S. economic slowdown isn't off the table Marketwatch How a shrinking cash pile at the Fed can aid liquidity in the $26 trillion Treasury market Calculated Risk Blog Trade Deficit increased to $64.3 Billion in October Calculated Risk Blog Asking Rents Down 1.1% Year-over-year Eye on Housing Job Openings Fall But Not For Construction

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