Rising Rates Continue to Sideline Borrowers

Increased mortgage rates continued to damp down both purchase and refinance activity during the week ended August 11. The Mortgage Bankers Association said its Market Composite Index, a measure of mortgage loan application volume, decreased 0.8 percent on a seasonally adjusted basis from the prior week and declined by 2 percent before seasonal adjustment. The Refinance Index fell 2 percent and was 35 percent lower than the same week one year ago. The refinance share of mortgage activity decreased to 28.6 percent of total applications from 28.7 percent week-over-week. [refiappschart] The seasonally adjusted Purchase Index was unchanged from the prior week and slid 2 percent on an unadjusted basis. Purchases were 26 percent lower than during the same week in 2022. [purchaseappschart] “Treasury rates were elevated again last week following mixed data on inflation and more indication of resiliency in the economy, which may pose a challenge to the Federal Reserve’s efforts to lower inflation. The 30-year fixed mortgage rate increased for the third straight week, reaching 7.16 percent, matching October 2022’s rate and the highest rate since 2001 ,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Overall applications decreased because of these higher rates, as both purchase and refinance applications ended the week at their lowest levels since February 2023. Government purchase applications provided a bright spot, increasing 2.4 percent over the week, driven by increases in both FHA and VA purchase categories. The ARM share of applications rose slightly to 7 percent, the highest since April 2023, as borrowers look[ed] for relief from higher fixed rates.”

August 16, 2023 Download our Mobile App: Download our Mobile App: Housing News Rising Rates Continue to Sideline Borrowers Increased mortgage rates continued to damp down both purchase and refinance activity during the week ended August 11. The Mortgage Bankers Association said its Market Composite Index, a measure of mortgage loan application volume, decreased 0.8 perce... (read more) Mortgage Rate Watch Mortgage Rates Are Inches From Multi-Decade Highs If you could time travel back to October 20th, 2022, you'd find mortgage rates that are just a hair higher than today's at most lenders, but the difference is now too small to care about. Not only that, but many scenarios at many lenders would ... (read more) MBS Commentary OK Rates... Explain Yourself! OK Rates... Explain Yourself! Today's Fed Minutes were uneventful with a volume spike that didn't even eclipse those seen after today's 8:20am CME open or the 9:15am Industrial Production data. That put... (read more) Rob Chrisman DSCR, HELOC, Automation, Outsourcing, Processing Products; Disaster Updates; Mortgage Apps Drop for 4th Consecutive Week If I am not borrowing money, the impact of higher rates isn’t a big direct hit to my lifestyle or spending. But if I had a credit card from Kohl’s, paying 30 percent would sure dissuade me from buying something and putting it on “layaway.” Lowe’s? 28... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.34% +0.08% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.34% +0.08 0.00 15 Yr. Fixed 6.68% +0.03 0.00 30 Yr. FHA 7.00% +0.04 0.00 30 Yr. Jumbo 7.29% +0.04 0.00 5/1 ARM 7.15% 0.00 0.00 30 Yr. VA 7.04% +0.09 0.00 Updates Daily - Last Update: 8/16 15 Yr. Fixed Rate 6.68% +0.03% Rate Change Points Freddie Mac 30 Yr. Fixed 6.96% +0.06 0.00 15 Yr. Fixed 6.34% +0.09 0.00 Updates Weekly - Last Update: 8/10 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.16% +0.07 0.68 15 Yr. Fixed 6.57% +0.06 0.94 30 Yr. Jumbo 7.11% +0.07 0.55 Updates Weekly - Last Update: 8/16 MBS / Treasuries UMBS 30YR 5.5 97.66 -0.25 Price / Yield Change MBS UMBS 5.5 97.66 -0.25 UMBS 6.0 99.38 -0.16 GNMA 5.5 97.88 -0.23 GNMA 6.0 99.45 -0.17 Pricing as of: 8/16 5:31PM EST 10 Year US Treasury 4.2660 +0.0470 Price / Yield Change US Treasury 2 YR Treasury 4.976 +0.015 5 YR Treasury 4.417 +0.039 7 YR Treasury 4.365 +0.045 10 YR Treasury 4.266 +0.047 30 YR Treasury 4.361 +0.042 Pricing as of: 8/16 5:31PM EST Latest Video Fed signals continuing worries about inflation Mortgage servicing is thriving due to homeowners deciding not to sell, says... Country Garden's economic fallout comes to light as China's real estate woe... Marcus & Millichap CEO on the state of commercial real estate demand Around the Web CNBC Fed officials see 'upside risks' to inflation possibly leading to more rate hikes, minutes show Atlanta Fed Atlanta Fed GDPNow Up To 5.8 Percent CNBC Treasury yields fall as investors await Fed meeting minutes Calculated Risk Blog Housing Starts Increased to 1.452 million Annual Rate in July Calculated Risk Blog Industrial Production Increased 1.0% in July Eye on Housing Builder Confidence Falls on Rising Mortgage Rates Eye on Housing Slight Decline for Single-Family Built-for-Rent Eye on Housing Single-Family Starts Edge Higher in July but Rising Rate Concerns Persist CNBC Regional banks slide after Fed's Kashkari advocates 'significantly further' capital regulation forexlive Atlanta Fed GDPNow sees 3Q growth at 5.0% up from 4.1% last. Reuters Fed's Kashkari says he's not ready to say Fed's done with rate hikes CNBC 10-year Treasury yield climbs as investors await economic reports CNBC Retail sales increased 0.7% in July, better than the 0.4% estimate

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