Purchase Applications Increase as Rates Hit 10-Week Low

Despite the three-day week observed by most businesses last week, purchase mortgage applications more than held their own. The Mortgage Bankers Association (MBA) said its seasonally adjusted Purchase Index gained 5 percent for the week although it lost 31 percent on an unadjusted basis. It was 19 percent lower than the same week in 2022, also a holiday week. [purchaseappschart] The Refinance Index did not fare nearly as well. It was down 9 percent from the previous week and was 1 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 30.6 percent of total applications from 32.4 percent the prior week. [refiappschart] As a result, the Market Composite Index, a measure of all mortgage application volume, eked out a 0.3 percent gain on a seasonally adjusted basis from one week earlier and fell by 33 percent before adjustment. “Mortgage rates decreased for the fourth time in five weeks, with the 30-year fixed rate dipping to 7.37 percent, the lowest level in 10 weeks. There was a slight increase in applications overall, driven by a five percent increase in purchase applications, but refinance applications decreased over the week,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Rates have declined more than 50 basis points over the past six weeks, which has helped to spur a small increase in purchase applications, but activity last week was still around 20 percent lower than a year ago. The purchase market remains depressed because of the ongoing, low supply of existing homes on the market. Similarly, refinance activity will likely be muted for some time, even with the recent decline in rates, as many borrowers locked in much lower rates in 2020 and 2021.”

November 29, 2023 Download our Mobile App: Download our Mobile App: Housing News Purchase Applications Increase as Rates Hit 10-Week Low Despite the three-day week observed by most businesses last week, purchase mortgage applications more than held their own. The Mortgage Bankers Association (MBA) said its seasonally adjusted Purchase Index gained 5 percent for the week although it ... (read more) Mortgage Rate Watch Lowest Mortgage Rates in Nearly 3 Months There were no major economic reports or news headlines in play today. Movement in the bond market (which underlies mortgage rate changes) was orderly and moderate. There were no major changes in high level lending costs or any other costs... (read more) MBS Commentary Shifting Trends, Shifting Strategies? Shifting Trends, Shifting Strategies? Another day of modest to moderate gains, but this time without the same sort of obvious cause and effect relationship seen with yesterday's Waller comments. That's ... (read more) Rob Chrisman HMDA Audit, QC, TPO Products; Conforming Conventional News; LoanCare Attack; Strong GDP Report; New Loan Limits There is always non-mortgage financial news. Mark Cuban is both selling his share in the Dallas Mavericks and leaving Shark Tank. Berkshire Hathaway’s Vice Chairman Charlie Munger has died. When I want something bougie to give as a Christmas present,... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.13% -0.17% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.13% -0.17 0.00 15 Yr. Fixed 6.50% -0.23 0.00 30 Yr. FHA 6.50% -0.12 0.00 30 Yr. Jumbo 7.60% -0.12 0.00 5/1 ARM 6.72% -0.13 0.00 30 Yr. VA 6.50% -0.14 0.00 Updates Daily - Last Update: 11/29 15 Yr. Fixed Rate 6.50% -0.23% Rate Change Points Freddie Mac 30 Yr. Fixed 7.29% -0.15 0.00 15 Yr. Fixed 6.67% -0.09 0.00 Updates Weekly - Last Update: 11/22 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.37% -0.04 0.64 15 Yr. Fixed 6.88% -0.01 0.52 30 Yr. Jumbo 7.54% +0.03 0.62 Updates Weekly - Last Update: 11/29 MBS / Treasuries UMBS 30YR 6.0 100.53 +0.20 Price / Yield Change MBS UMBS 6.0 100.53 +0.20 UMBS 6.5 101.69 +0.09 GNMA 6.0 100.84 +0.16 GNMA 6.5 101.64 +0.06 Pricing as of: 11/29 5:31PM EST 10 Year US Treasury 4.2630 -0.0620 Price / Yield Change US Treasury 2 YR Treasury 4.641 -0.102 5 YR Treasury 4.214 -0.068 7 YR Treasury 4.281 -0.063 10 YR Treasury 4.263 -0.062 30 YR Treasury 4.444 -0.061 Pricing as of: 11/29 5:31PM EST Latest Video The market is anticipating the Fed will lower rates, says Aureus Asset Mana... Fed's Beige Book sees slowing activity, easing price increases U.S. GDP grew at a 5.2% rate in the third quarter, even stronger than first... Consumers are still investing in home improvement despite weak home sales, ... Around the Web CNBC Here's what it would take for the Fed to start slashing interest rates in 2024 CNBC U.S. GDP grew at a 5.2% rate in the third quarter, even stronger than first indicated Marketwatch Fed's Mester says interest-rate policy is in a 'good place' Marketwatch Fed's Bostic says he's more confident in his soft-landing forecast FHFA FHFA Announces Conforming Loan Limit Values for 2024 Calculated Risk Blog Fannie and Freddie Serious Delinquencies in October: Single Family Declined, Multi-Family Increased Marketwatch Treasury yields fall after comments by Fed's Waller Calculated Risk Blog Final Look at Local Housing Markets in October CNBC Treasury yields decline as investors weigh interest rate policy path ahead Calculated Risk Case-Shiller: National House Price Index Up 3.9% year-over-year in September; New all-time High Calculated Risk Blog Fed's Beige Book: "Economic activity slowed since the previous report" Eye on Housing Absorption of New Multifamily Units Rises as Completions Near 100K in Second Quarter of 2023 CNBC Fed's Waller expresses confidence that policy is in the right place to bring down inflation

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