Rate Volatility Continues to Roil Application Volume

The volume of mortgage applications fell again last week, dragged lower by refinancing which had its largest week-over-week decline since mid-May. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, decreased 3.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index fell 5 percent. The Refinance Index plunged by 8 percent and was 83 percent lower than the same week one year ago. The refinance share of mortgage activity decreased to 30.3 percent of total applications from 31.1 percent the previous week. [refiappschart] The seasonally adjusted Purchase Index decreased 2 percent and the unadjusted version was down 4 percent from the prior week. That index was 23 percent below its level during the same week in 2021. [purchaseappschart] Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said rate volatility is responsible for the volume declines. “Mortgage rates and Treasury yields rose last week as Federal Reserve officials indicated that short-term rates would stay higher for longer. “Mortgage rates have been volatile over the past month,” he said, “ bouncing between 5.4 percent and 5.8 percent. In another sign that market volatility has picked up, the average rate on a jumbo loan was 5.32 percent, 48 basis points lower than for a conforming loan. This spread reached a high of over 50 basis points in July – and had narrowed – before now widening again.”

August 31, 2022 Download our Mobile App: Download our Mobile App: Housing News Rate Volatility Continues to Roil Application Volume The volume of mortgage applications fell again last week, dragged lower by refinancing which had its largest week-over-week decline since mid-May. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, decre... (read more) Mortgage Rate Watch Rates End August at Highs The last day of August was also the worst day for rates in August. In fact, it was the worse than any of July as well and not too terribly far from the 14-year highs seen in June. The average lender is only about a quarter of a percent to... (read more) MBS Commentary So Long August. Don't Let The Door Hit Ya! So Long August. Don't Let The Door Hit Ya! July! We miss you! August, please leave! Hopefully September finds a way to be a warm bowl of porridge between July's rate-friendly exuberance ... (read more) Rob Chrisman TPO Products; Homebuyer, Profitability Products; BofA's 0% Down; Mortgage Applications Trend Lower on Rate Volatility My cat Myrtle has a certain amount of “girth,” as they say. But I tell her that she carries it well as the calories from line-caught halibut have far outweighed her time working out to burn them off. In fact, I’d be hard-pressed to remember her ever ... (read more) Mortgage Rates Rates End August at Highs 30 Yr. Fixed Rate 5.99% +0.04% Rate Change Points Mortgage News Daily 30 Yr. Fixed 5.99% +0.04 0.00 15 Yr. Fixed 5.29% +0.05 0.00 30 Yr. FHA 5.32% +0.02 0.00 30 Yr. Jumbo 5.10% +0.05 0.00 5/1 ARM 5.95% +0.02 0.00 30 Yr. VA 5.36% +0.01 0.00 Updates Daily - Last Update: 8/31 15 Yr. Fixed Rate 5.29% +0.05% Rate Change Points Freddie Mac 30 Yr. Fixed 5.13% -0.09 0.80 15 Yr. Fixed 4.55% -0.04 0.70 5/1 Yr. ARM 4.39% -0.04 0.30 Updates Weekly - Last Update: 8/18 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 5.80% +0.15 0.71 15 Yr. Fixed 5.10% +0.09 0.82 30 Yr. Jumbo 5.32% +0.04 0.48 Updates Weekly - Last Update: 8/31 MBS / Treasuries So Long August. Don't Let The Door Hit Ya! UMBS 30YR 4.5 99.30 -0.39 Price / Yield Change MBS UMBS 4.5 99.30 -0.39 UMBS 5.0 100.83 -0.31 GNMA 4.5 99.92 -0.34 GNMA 5.0 101.25 -0.23 Pricing as of: 8/31 5:41PM EST 10 Year US Treasury 3.1964 +0.0846 Price / Yield Change US Treasury 2 YR Treasury 3.495 +0.037 5 YR Treasury 3.353 +0.081 7 YR Treasury 3.312 +0.094 10 YR Treasury 3.196 +0.085 30 YR Treasury 3.300 +0.073 Pricing as of: 8/31 5:41PM EST Latest Video The 2pm Bond Report - August 31, 2022 Fed's Loretta Mester sees a benchmark rate above 4% Private payrolls increased by 132,000 in August, ADP reports The 9am Bond Report - August 31, 2022 Around the Web Calculated Risk Blog Inflation Adjusted House Prices Declined in June CNBC Private payrolls grew by just 132,000 in August, ADP says in reworked jobs report CNBC Fed's Mester sees benchmark rate above 4% and no cuts at least through 2023 cnbc Euro zone inflation hits yet another record high in August CNBC Fed's Williams pushes back on market expectations of a rate cut next year CNBC Job openings top 11.2 million in July, well above estimate and nearly double the available workers CNBC UK inflation could top 22% as energy prices soar, Goldman Sachs warns Calculated Risk Blog Comments on June Case-Shiller and FHFA House Price Increases CNBC Germany's borrowing costs set for biggest monthly jump since the early 1980s CNBC Home prices weakened in June, but were still much higher than a year ago, says S&P Case Shiller Reuters ECB must swiftly normalise rates; neutral may not be enough, Knot says Eye on Housing Stable Reading for July Construction Job Openings CNBC Euro zone inflation hits another record of 9.1% as food and energy prices soar

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