Rates Continue to Deter Purchasing

Mortgage application volume during the week ended July 24 was down slightly from the prior week. Static interest rates did little to stir the refinancing pot, but purchase volume declined. The Mortgage Bankers Association said its Market Composite Index, a measure of that volume, decreased 1.8 percent on a seasonally adjusted basis from one week earlier and was down 1.5 percent on an unadjusted basis. The Refinance Index ticked down 0.4 percent week-over-week and was 30 percent lower than the same week one year ago. The refinance share of mortgage activity increased to 28.7 percent of total applications from 28.4 percent the previous week. [refiappschart] The seasonally adjusted Purchase Index fell 3 percent and declined 2 percent before adjustment. The index was 23 percent lower than the same week one year ago. [purchaseappschart] “Mortgage rates were essentially flat last week but remained high, with the 30-year fixed staying at 6.87 percent and contributing to a pullback in mortgage applications,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The 2.5 percent decline in purchase activity, partly driven by a 10 percent decrease in FHA applications, pushed the purchase index to its lowest level in over a month. The decrease in FHA purchase applications contributed to an increase in the overall average purchase loan size to $432,700, its highest level since the end of this May. Refinance applications remained lackluster, running 30 percent behind year-ago levels. Many borrowers remain on the sidelines given current rates and persistent affordability challenges.”

July 26, 2023 Download our Mobile App: Download our Mobile App: Housing News Rates Continue to Deter Purchasing Mortgage application volume during the week ended July 24 was down slightly from the prior week. Static interest rates did little to stir the refinancing pot, but purchase volume declined. The Mortgage Bankers Association said its Market Composite I... (read more) Mortgage Rate Watch Mortgage Rates Fall Moderately After Fed Rate Hike As we discussed yesterday, it was entirely possible that today would bring a rate hike from the Fed that coincided with mortgage rates moving LOWER. This can be confusing due to the mistaken belief that the Fed Funds Rate has an immediate and d... (read more) MBS Commentary How Will Powell See It? While there's always a chance that any of the year's 8 scheduled Fed announcements will thread the needle, today's installment is just as likely to provide some clarity for market participants. To be sure, there is nothing interesting to be gle... (read more) Rob Chrisman Productivity, Automation, Data Tracking; HELOC Servicing Products; Freddie and Fannie News; Interview on Yield Curve Inversion Today's Fed meeting announcement is the last one until September 20. Mortgage rates, of course, are prone to moving around even without the Fed’s direction. Meanwhile, the second quarter earnings from lenders are of great interest to warehouse banks ... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.95% -0.09% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.95% -0.09 0.00 15 Yr. Fixed 6.35% -0.05 0.00 30 Yr. FHA 6.62% -0.02 0.00 30 Yr. Jumbo 7.01% -0.01 0.00 5/1 ARM 6.95% -0.01 0.00 30 Yr. VA 6.60% -0.04 0.00 Updates Daily - Last Update: 7/26 15 Yr. Fixed Rate 6.35% -0.05% Rate Change Points Freddie Mac 30 Yr. Fixed 6.78% -0.18 0.00 15 Yr. Fixed 6.06% -0.24 0.00 Updates Weekly - Last Update: 7/20 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.87% +0.29 0.66 15 Yr. Fixed 6.36% -0.06 0.72 30 Yr. Jumbo 6.89% -0.15 0.64 Updates Weekly - Last Update: 7/19 MBS / Treasuries UMBS 30YR 5.5 99.55 +0.19 Price / Yield Change MBS UMBS 5.5 99.55 +0.19 UMBS 6.0 100.80 +0.08 GNMA 5.5 99.63 +0.17 GNMA 6.0 100.64 +0.09 Pricing as of: 7/26 5:31PM EST 10 Year US Treasury 3.8690 -0.0210 Price / Yield Change US Treasury 2 YR Treasury 4.847 -0.032 5 YR Treasury 4.111 -0.057 7 YR Treasury 4.004 -0.034 10 YR Treasury 3.869 -0.021 30 YR Treasury 3.941 +0.005 Pricing as of: 7/26 5:31PM EST Latest Video Fed Chair Powell remarks on supply constraints in the housing market Fed Chair Powell: A return to 2% inflation could come by 2025 Fed Chair Powell: Data has been broadly consistent with expectations, which... Powell is leaving the Fed's options open, says PIMCO's Richard Clarida Around the Web CNBC Fed approves hike that takes interest rates to highest level in more than 22 years Eye on Housing Measured Hawkishness: The Fed Hikes in July CNBC Treasury yields fall ahead of Fed interest rate decision CNBC Here's what to expect from the Federal Reserve meeting Wednesday Marketwatch Everyone thinks the Fed's rate hike this week will be the final one — except the Fed Eye on Housing Interest for New Homes Strengthens Eye on Housing Housing Demand Slows on Higher Rates and Prices Wall Street Journal Home Prices Fell Year-Over-Year in May Calculated Risk Blog Update on Four High Frequency Indicators Calculated Risk Blog Housing July 24th Weekly Update: Inventory increased 1.9% Week-over-week; Down 8.8% Year-over-year CNBC Treasury yields climb as investors weigh interest rate decisions ahead Calculated Risk Blog Comments on May Case-Shiller and FHFA House Prices Calculated Risk Blog Case-Shiller: National House Price Index Decreased 0.5% year-over-year in May

© 2023 Mortgage News Daily, LLC. | 19701 Bethel Church Rd. | Cornelius, NC 28031 Interest rates displayed are national averages and for informational purposes only. Actual rates from lenders may vary based on several factors including, but not limited to, credit worthiness, ability to replay, credit score, down payment, loan term, etc. This email was sent to: newsletter@newslettercollector.com. Go here to UNSUBSCRIBE from this email.