Mortgage Applications at 25-Year Low; Mortgage Rates at 20 Year High; Housing Starts Slide

Mortgage application activity fell again during the week ended October 14 as mortgage interest rates hit their highest level in 20 years. The Market Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 4.5 percent on a seasonally adjusted basis from one week earlier and was down 4 percent on an unadjusted basis. The Refinance Index dropped 7 percent week-over-week and was 86 percent lower than the same week in 2021. The refinance share of mortgage activity decreased to 28.3 percent of total applications from 29.0 percent during the week ended October 7. [refiappschart] The seasonally adjusted Purchase Index was down by 4 percent from one week earlier and was 3 percent lower before adjustment. Purchase volume was 38 percent lower than the same week one year ago. [purchaseappschart] “Mortgage applications are now into their fourth month of declines, dropping to the lowest level since 1997, as the 30-year fixed mortgage rate hit 6.94 percent – the highest level since 2002,” said Joel Kan, MBA’s Vice President, and Deputy Chief Economist. “The speed and level to which rates have climbed this year have greatly reduced refinance activity and exacerbated existing affordability challenges in the purchase market. Residential housing activity ranging from new housing starts to home sales have been on downward trends coinciding with the rise in rates. The current 30-year fixed rate is now well over three percentage points higher than a year ago, and both purchase and refinance applications were down 38 percent and 86 percent over the year, respectively.”

October 19, 2022 Download our Mobile App: Download our Mobile App: Housing News Mortgage Application Volume Hits 25-Year Low Mortgage application activity fell again during the week ended October 14 as mortgage interest rates hit their highest level in 20 years. The Market Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application vol... (read more) Housing News Housing Starts Slide While Building Permits Improve The U.S. Census Bureau and the Department of Housing and Urban Development reported a small improvement in the number of permits issued in September after a dismal report in August. Housing starts, however, gave back much of the prior month’s double-... (read more) Mortgage Rate Watch Another Day, Another 20 Year High in Rates There's no sense in beating a dead horse or wading through another "same story, different day" assessment of rates. They were already at 20 year highs yesterday, so even a modest move higher would obviously enable the same claim. And it ended u... (read more) MBS Commentary Another Move to Long Term Lows 'Just Because' Another Move to Long Term Lows 'Just Because' Today began with more upward pressure on yields, apparently due to a higher-than-expected inflation report in the UK. That jived with much of the recent ana... (read more) Rob Chrisman Underwriting, Compliance, eMortgage, Loss Mitigation Products; Training and Events; Apps Drop Further Here in Orange County, the mortgage talk runs the gamut. Sure, a recession would cause rates to drop, but before that happens, are residential lenders looking at a long autumn and winter? Our biz is dealing with broad topics such as affordable housin... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.22% +0.07% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.22% +0.07 0.00 15 Yr. Fixed 6.55% +0.17 0.00 30 Yr. FHA 6.75% +0.13 0.00 30 Yr. Jumbo 6.15% +0.05 0.00 5/1 ARM 6.45% +0.10 0.00 30 Yr. VA 6.77% +0.12 0.00 Updates Daily - Last Update: 10/19 15 Yr. Fixed Rate 6.55% +0.17% Rate Change Points Freddie Mac 30 Yr. Fixed 6.92% +0.26 0.80 15 Yr. Fixed 6.09% +0.19 1.10 5/1 Yr. ARM 5.81% +0.45 0.20 Updates Weekly - Last Update: 10/13 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.94% +0.13 0.95 15 Yr. Fixed 6.09% -0.03 1.18 30 Yr. Jumbo 6.31% +0.06 0.67 Updates Weekly - Last Update: 10/19 MBS / Treasuries UMBS 30YR 5.0 95.72 -0.83 Price / Yield Change MBS UMBS 5.0 95.72 -0.83 UMBS 5.5 98.02 -0.70 GNMA 5.0 96.30 -0.73 GNMA 5.5 98.41 -0.61 Pricing as of: 10/19 5:36PM EST 10 Year US Treasury 4.1377 +0.1311 Price / Yield Change US Treasury 2 YR Treasury 4.561 +0.130 5 YR Treasury 4.359 +0.137 7 YR Treasury 4.267 +0.139 10 YR Treasury 4.138 +0.131 30 YR Treasury 4.129 +0.103 Pricing as of: 10/19 5:36PM EST Latest Video Mortgage rate on 30-year fixed loan soars to 7.22 percent Fed Beige Book sees 'modest expansion in economic activity' Consumer spending slows as Fed doubles down on hawkish rhetoric The 9am Bond Report - October 19, 2022 Around the Web CNBC IRS: Here are the new income tax brackets for 2023 bbg Bullard Says Fed Must ‘Follow Through’ on Anticipated Rate Hikes Calculated Risk Blog Fed's Beige Book: "Rising mortgage rates and elevated house prices further weakened single-family starts and sales" CNBC 66% of American workers are worse off financially than a year ago due to inflation, report finds Reuters Fed's Kashkari says labor shortages still a big issue for business Calculated Risk Blog September Housing Starts: Record Number of Housing Units Under Construction CNBC Homebuilder sentiment drops to half of what it was six months ago CNBC Treasury yields climb as recession fears spread Calculated Risk Blog 3rd Look at Local Housing Markets in September, California Sales off 30% YoY Calculated Risk Blog Housing Starts Decreased to 1.439 million Annual Rate in September Eye on Housing Single-Family Production Continues to Weaken in September CNBC UK inflation rate rises to 10.1% as food and energy prices continue surge Calculated Risk Blog AIA: Architecture Billings Index "Moderates but remains healthy" in September

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