Affordability Continues to C rimp Application Volume

The weekly applications report from the Mortgage Bankers Association (MBA) wasn’t positive, but it was certainly consistent. MBA said its Market Composite Index, a measure of mortgage loan application volume, was down by 3.0 percent across the board during the week ended July 28. The composite index decreased 3.0 percent on both a seasonally adjusted and unadjusted basis. The same percentage decline held for the Refinance Index and both the adjusted and unadjusted Purchase Indices. Applications for refinancing were 32 percent lower than the same week in 2022 and the Purchase Index was down 26 percent year-over-year. [refiappschart] [purchaseappschart] “Mortgage rates edged higher last week, with the 30-year fixed mortgage rate [increasing] to 6.93 percent and leading to another decline in overall applications,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The purchase index decreased for the third straight week to its lowest level since the beginning of June and remains 26 percent behind last year’s levels. The decline in purchase activity was driven mainly by weaker conventional purchase application volume, as limited housing inventory and rates still close to 7 percent are crimping affordability for many potential homebuyers. The refinance market continues to feel the impact of these higher rates, and applications trailed last year’s pace by over 30 percent with many homeowners not looking for refinance opportunities.” Highlights from MBA’s Weekly Mortgage Applications Survey

August 2, 2023 Download our Mobile App: Download our Mobile App: Housing News Affordability Continues to Crimp Application Volume The weekly applications report from the Mortgage Bankers Association (MBA) wasn’t positive, but it was certainly consistent. MBA said its Market Composite Index, a measure of mortgage loan application volume, was down by 3.0 percent across the board ... (read more) Mortgage Rate Watch Mortgage Rates Highest in Nearly a Month Mortgage rates moved higher again today as the underlying bond market digested stronger economic data and details of the U.S. Treasury's increased borrowing needs. From yesterday's coverage: Treasury issuance matters because Treasuries are one... (read more) MBS Commentary Yields Briefly Hit 8 Month Highs Yields Briefly Hit 8 Month Highs Bond yields spiked to their highest levels in more than 8 months this morning following another upbeat ADP report. At first glance, it was a repeat of last month's ... (read more) Rob Chrisman 2008 & 2018 lenders: ghosts in the machine; warehouse, pre-approval, DPA, manufactured housing, marketing products “If you have no interest in banking, you are not a loan.” (Best said out loud to a 6th grader.) Cutting edge humor aside, this morning I head to Orlando for the FAMP event, in a state where there are a total of 186 banks operating with 4162 branches.... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.13% +0.03% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.13% +0.03 0.00 15 Yr. Fixed 6.48% +0.03 0.00 30 Yr. FHA 6.78% +0.04 0.00 30 Yr. Jumbo 7.17% +0.02 0.00 5/1 ARM 6.95% -0.01 0.00 30 Yr. VA 6.82% +0.07 0.00 Updates Daily - Last Update: 8/2 15 Yr. Fixed Rate 6.48% +0.03% Rate Change Points Freddie Mac 30 Yr. Fixed 6.81% +0.03 0.00 15 Yr. Fixed 6.11% +0.05 0.00 Updates Weekly - Last Update: 7/27 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.93% +0.06 0.68 15 Yr. Fixed 6.39% +0.02 0.78 30 Yr. Jumbo 6.89% -0.01 0.58 Updates Weekly - Last Update: 8/2 MBS / Treasuries UMBS 30YR 5.5 98.75 -0.11 Price / Yield Change MBS UMBS 5.5 98.75 -0.11 UMBS 6.0 100.20 -0.09 GNMA 5.5 98.84 -0.11 GNMA 6.0 100.08 -0.11 Pricing as of: 8/2 5:31PM EST 10 Year US Treasury 4.0760 +0.0390 Price / Yield Change US Treasury 2 YR Treasury 4.881 -0.025 5 YR Treasury 4.230 +0.003 7 YR Treasury 4.165 +0.025 10 YR Treasury 4.076 +0.039 30 YR Treasury 4.171 +0.070 Pricing as of: 8/2 5:31PM EST Latest Video Treasury market starting to see first signs of stress, says Strategas' Clif... Foreign buyers of U.S. homes fall to lowest level on record Private sector added 324,000 jobs in July, well above expectations, ADP say... Fitch 'vying for credibility' with U.S. rating downgrade, says Moneta CIO A... Around the Web Marketwatch A giant wealth transfer explains why the economy isn't responding to Fed policy: Ray Dalio CNBC JPMorgan CEO Jamie Dimon calls Fitch Ratings U.S. downgrade 'ridiculous,' but says 'doesn't really matter' Eye on Housing Homeownership Rates for Households Aged Under 35 Fell to 38.5% Calculated Risk Blog How Much will the Fannie & Freddie Conforming Loan Limit Change for 2024? Treasury Treasury Issues Updated Auction Amounts CNBC Private sector added 324,000 jobs in July, well above expectations, ADP says CNBC Foreign buyers are bailing on the U.S. housing market. Here's why Marketwatch 'Eye-popping' borrowing need from U.S. Treasury raises risk of buyers' fatigue CNBC U.S. debt downgrade sinks global markets but economists are not concerned CNBC The 5 U.S. metro areas with the highest single-family rents 3 are in California Eye on Housing Unaffordable Prices & Bidding Wars Hold Buyers Back CNBC Job market is undergoing an 'immaculate cooling,' says economist but there are pockets of heat Eye on Housing June Gains in Private Residential Construction Spending

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