Mortgage Demand Regressing Amid Rapid Rate Spike

In today's weekly mortgage application survey from the MBA, the average 30yr fixed mortgage rate only rose from 6.73 to 6.81%. Meanwhile, daily average rates are already back over 7%. Any way you slice it, rates have been rising quickly and the fallout is completely unsurprising when it comes to refinance applications. For context, here's how the past year fits in the bigger picture: Refinance applications wax and wane with interest rates. The present environment is particularly restrained by the fact that so many people refinanced to such low rates in 2020-2022. At the moment, the only group of borrowers with a rate-based refinance incentive are those who purchased or refinanced in late 2023 when rates were near 8%. Purchase applications are much more even-keeled, but also not loving the current rate/affordability environment. Other highlights from this week's survey: Refinances accounted for 39.9% of total applications, down from 43.1% last week Average loan size fell below $300k FHA loans were 15.5% of total vs 16.4% last week VA loans were 12.5% of total vs 14.6% last week Conventional rates were 6.81 up from 6.73 vs jumbo rates at 6.98 (up from 6.77... a much bigger jump) ARM rates fell from 6.20 to 6.05, but upfront costs increased from 0.59 to 0.84.

November 6, 2024 Download our Mobile App: Download our Mobile App: Housing News Mortgage Demand Regressing Amid Rapid Rate Spike In today's weekly mortgage application survey from the MBA, the average 30yr fixed mortgage rate only rose from 6.73 to 6.81%. Meanwhile, daily average rates are already back over 7%. Any way you slice it, rates have been rising quickly a... (read more) Mortgage Rate Watch Please Forget Everything You Think You Know About Fed Rate Cuts Mortgage rates spent the entire month of October moving higher at a fairly quick pace. Some of that had to do with stronger economic data, but at least as much had to do with the bond market adjusting to election probabilities. As we've b... (read more) MBS Commentary Huge Post-Election Sell-Off, The Calmest Result Imaginable Heading into the election, we knew the bond market was losing ground in concert with improving odds of a Trump victory and red sweep. After being surprised in 2016, markets were determined to bake in as much of the expected outcome as possible.... (read more) Rob Chrisman Verification, AI, Servicing Tools; LO Hiring Risk Mitigation; The Election, Rates, and Regulation; Apps Plummet I went to a Vikings game with a friend and decided I wanted a drink. I wanted the big soda pop, but when I saw the price, I decided… A Minnesota will do. Here in Minneapolis, one topic of conversation is the speed at which regulators seem to be actin... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.13% +0.09% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.13% +0.09 0.00 15 Yr. Fixed 6.55% +0.08 0.00 30 Yr. FHA 6.62% +0.05 0.00 30 Yr. Jumbo 7.25% +0.11 0.00 7/6 SOFR ARM 7.00% +0.05 0.00 30 Yr. VA 6.64% +0.06 0.00 Updates Daily - Last Update: 11/6 15 Yr. Fixed Rate 6.55% +0.08% Rate Change Points Freddie Mac 30 Yr. Fixed 6.72% +0.18 0.00 15 Yr. Fixed 5.99% +0.28 0.00 Updates Weekly - Last Update: 10/31 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.73% +0.21 0.69 15 Yr. Fixed 6.27% +0.29 0.77 30 Yr. Jumbo 6.77% +0.04 0.49 Updates Weekly - Last Update: 10/30 MBS / Treasuries UMBS 30YR 5.5 98.99 -0.47 Price / Yield Change MBS UMBS 5.5 98.99 -0.47 UMBS 6.0 100.67 -0.26 GNMA 5.5 99.47 -0.25 GNMA 6.0 100.88 -0.11 Pricing as of: 11/6 5:31PM EST 10 Year US Treasury 4.4339 +0.1516 Price / Yield Change US Treasury 2 YR Treasury 4.270 +0.083 5 YR Treasury 4.274 +0.140 7 YR Treasury 4.367 +0.158 10 YR Treasury 4.434 +0.152 30 YR Treasury 4.633 +0.199 Pricing as of: 11/6 5:31PM EST Latest Video Fed's very much still looking to get Fed funds rate to a more sensible plac... Former Dallas Fed Pres. Robert Kaplan: There are two phases to the Fed's ra... Housing affordability weighs on voters during election US homeowners have record equity Around the Web Marketwatch Trumps economic team: Who could run Treasury, the Fed and energy in his second term CNBC Mortgage rates surge higher on Trump victory, causing housing stocks to fall CNBC Weekly mortgage demand tanks 11% as interest rates surge higher CNBC Brits brace for higher mortgage payments despite Bank of England seen cutting rates CNBC House majority still in play as Republicans eye a red sweep CNBC Average age of first-time homebuyers is 38, an all-time high. Here's what that says about the real estate market CNBC The Fed is expected to cut interest rates again Thursday. Here's everything you need to know Marketwatch The biggest part of the U.S. economy posts fastest growth in more than two years, ISM finds Calculated Risk Blog Asking Rents Mostly Unchanged Year-over-year Calculated Risk Blog In Q2, almost 20% of Units Started Built-for-Rent were Single Family Calculated Risk Blog ISM Services Index Increases to 56.0% in October Eye on Housing Student Housing Construction Investment Rises in the Third Quarter of 2024 Calculated Risk Blog Trade Deficit Increased to $84.4 Billion in September

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