MBA Expects Refinancing to Remain Depressed

Mortgage application activity declined last week, again due, partially at least, to a holiday shortened business week. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of loan application volume, declined 1.7 percent on a seasonally adjusted basis from one week earlier, including an adjustment to account for the Independence Day holiday. Application volume was down 13 percent on an unadjusted basis. The Refinance Index increased 2 percent from the previous week but was 80 percent lower than the same week one year ago. The refinance share of mortgage activity increased to 30.8 percent of total applications from 29.6 percent the previous week. [refiappschart] The Purchase Index was down 4 percent with seasonal adjustment and was 14 percent lower before adjustment compared to the previous week. The Index was down 18 percent from its level during the same week in 2021. [purchaseappschart] “Mortgage rates were mostly unchanged, but applications declined for the second straight week,” according to Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Purchase applications for both conventional and government loans continue to be weaker due to the combination of much higher mortgage rates and the worsening economic outlook. “After reaching a record $460,000 in March 2022, the average purchase loan size was $415,000 last week, pulled lower by the potential moderation of home-price growth and weaker purchase activity at the upper end of the market.”

July 13, 2022 Download our Mobile App: Download our Mobile App: Housing News MBA Expects Refinancing to Remain Depressed Mortgage application activity declined last week, again due, partially at least, to a holiday shortened business week. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of loan application volume, declined 1.7 percent ... (read more) Mortgage Rate Watch As Promised, Inflation Data Creates Rate Volatility, But Not Like You'd Expect Ask anyone who knows a thing or two about how interest rates work and they'll tell you: inflation is the enemy! What caused the record high rates back in the 70s/80s? Record high inflation! What pushed rates higher at the fastest ... (read more) Rob Chrisman Lock and Shop, Jumbo, Non-QM, Appraisal Tools; STRATMOR Tech Study; Events and Webinars; Inflation Up, Apps Down Sue W. writes, “After I say, ‘That’s crazy’ twice, please wrap up your story.” There are a lot of stories out there now as residential lenders tighten their belts, their payrolls, and their expenses in the face of rising rates, the worst inflation si... (read more) Mortgage Rates As Promised, Inflation Data Creates Rate Volatility, But Not Like You'd Expect 30 Yr. Fixed Rate 5.72% +0.01% Rate Change Points Mortgage News Daily 30 Yr. Fixed 5.72% +0.01 0.00 15 Yr. Fixed 4.98% +0.01 0.00 30 Yr. FHA 5.25% 0.00 0.00 30 Yr. Jumbo 4.80% 0.00 0.00 5/1 ARM 5.33% +0.02 0.00 30 Yr. VA 5.32% -0.01 0.00 Updates Daily - Last Update: 7/13 15 Yr. Fixed Rate 4.98% +0.01% Rate Change Points Freddie Mac 30 Yr. Fixed 5.30% -0.40 0.80 15 Yr. Fixed 4.45% -0.38 0.80 5/1 Yr. ARM 4.19% -0.31 0.40 Updates Weekly - Last Update: 7/7 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 5.74% -0.10 0.65 15 Yr. Fixed 4.96% -0.10 0.68 30 Yr. Jumbo 5.28% -0.14 0.44 Updates Weekly - Last Update: 7/6 MBS / Treasuries UMBS 30YR 4.5 100.05 +0.03 Price / Yield Change MBS UMBS 4.5 100.05 +0.03 UMBS 5.0 101.41 +0.06 GNMA 4.5 100.84 0.00 GNMA 5.0 101.86 +0.19 Pricing as of: 7/13 5:21PM EST 10 Year US Treasury 2.9355 -0.0351 Price / Yield Change US Treasury 2 YR Treasury 3.155 +0.104 5 YR Treasury 3.031 +0.012 7 YR Treasury 3.019 -0.015 10 YR Treasury 2.936 -0.035 30 YR Treasury 3.120 -0.039 Pricing as of: 7/13 5:21PM EST Latest Video Mortgage demand declines on worsening economic outlook People are dismissing the idea rate hikes might not work because they are, ... Has inflation peaked after hitting a 41-year high? The 2pm Bond Report - July 13, 2022 Around the Web Calculated Risk Blog BLS: CPI increased 1.3% in June; Core CPI increased 0.7% Calculated Risk Blog Fed's Beige Book: "Housing demand weakened noticeably" CNBC Fed report finds higher fears of inflation and potential recession CNBC Demand for big mortgages is shrinking as home prices moderate and expensive houses linger on the market Realtor.com Builders Are Slashing Home Prices and Slowing Construction as Buyers Pull Back, Survey Shows Calculated Risk Blog Lawler on Demographics: Observations and Updated Population Projections Calculated Risk Blog 2nd Look at Local Housing Markets in June, Sales Down Sharply Year-over-year Calculated Risk Blog Cleveland Fed: Median CPI increased 0.7% and Trimmed-mean CPI increased 0.8% in June Reuters MORNING BID-Goodbye Goldilocks CNBC Treasury yields dip as markets prepare for release of key inflation data CNBC U.S. Treasury yields tick higher as traders prepare for key inflation figures Reuters Oil slides as renewed China COVID curbs temper fuel demand outlook Calculated Risk Blog Reis: Office Vacancy Rate Increased in Q2, Mall Vacancy Rate Unchanged

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