Week Seven of Rate Hikes and Purchase Volume Falls Again

Interest rates rose again last week, as did the share of borrowers seeking a little price relief by applying for adjustable-rate mortgages (ARMs). While applications for refinancing rose slightly, overall volume declined again. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, declined by 1.0 percent on both a seasonally adjusted and unadjusted basis during the week ended October 20. The Refinance Index increased 2.0 percent from the previous week and was 8.0 percent lower than the same week one year ago. The refinance share of mortgage activity increased to 31.4 percent of total applications from 30.5 percent a week earlier. Both adjusted and unadjusted Purchase Indices were 2.0 percent lower than the prior week Purchase applications were down 22 percent on an annual basis. [refiappschart] [purchaseappschart] “Ten-year Treasury yields climbed higher last week, as global investors remained concerned about the prospect for higher-for-longer rates and burgeoning fiscal deficits. Mortgage rates followed Treasuries higher, with the 30-year fixed mortgage rate jumping 20 basis points to 7.9 percent – the highest since 2000. Rates have now risen seven consecutive weeks at a cumulative amount of 69 basis points,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Mortgage activity continued to stall, with applications dipping to the slowest weekly pace since 1995. These higher mortgage rates are keeping prospective homebuyers out of the market and continue to suppress refinance activity. The ARM share of applications inched up to 9.5 percent, its highest since November 2022. ”

October 25, 2023 Download our Mobile App: Download our Mobile App: Housing News Week Seven of Rate Hikes and Purchase Volume Falls Again Interest rates rose again last week, as did the share of borrowers seeking a little price relief by applying for adjustable-rate mortgages (ARMs). While applications for refinancing rose slightly, overall volume declined again. The Mortgage Bankers ... (read more) Mortgage Rate Watch 3-Day Winning Streak Ends as Mortgage Rates Jump Just when it looked like something new and different might be happening in the mortgage rate world, the market is quickly back to its old ways. After cresting 8.0% last week for a top tier 30yr fixed rate, the average lender was as low a... (read more) MBS Commentary Consolidation Confirmed as Longer-Term Yields Move Back Up Tuesday brought a dose of encouragement for the bond market. It was the third straight day of gains--an uncommon feat in recent months, to be sure! This raised the question: was it time to be more optimistic about the odds of 5% marking a new l... (read more) Rob Chrisman Tech Stack Analysis, LO Efficiency, Fair Lending Products; NAR is Lawyering Up; STRATMOR on Retaining Customers Here in the Milwaukee area (yes, the autumn colors are stellar), I attended a Newrez joint venture event and one of the conversation topics (besides lenders either saying “no mas” and exiting or being purchased, more below, or NAR’s legal events, mor... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.98% +0.08% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.98% +0.08 0.00 15 Yr. Fixed 7.29% +0.04 0.00 30 Yr. FHA 7.38% +0.05 0.00 30 Yr. Jumbo 8.05% +0.05 0.00 5/1 ARM 7.25% -0.03 0.00 30 Yr. VA 7.39% +0.04 0.00 Updates Daily - Last Update: 10/25 15 Yr. Fixed Rate 7.29% +0.04% Rate Change Points Freddie Mac 30 Yr. Fixed 7.63% +0.06 0.00 15 Yr. Fixed 6.92% +0.03 0.00 Updates Weekly - Last Update: 10/19 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.90% +0.20 0.77 15 Yr. Fixed 7.08% +0.10 1.42 30 Yr. Jumbo 7.78% +0.22 0.71 Updates Weekly - Last Update: 10/25 MBS / Treasuries UMBS 30YR 6.5 98.73 -0.59 Price / Yield Change MBS UMBS 6.5 98.73 -0.59 UMBS 7.0 100.61 -0.50 GNMA 6.5 99.13 -0.44 GNMA 7.0 100.78 -0.36 Pricing as of: 10/25 5:31PM EST 10 Year US Treasury 4.9550 +0.1360 Price / Yield Change US Treasury 2 YR Treasury 5.123 +0.015 5 YR Treasury 4.916 +0.101 7 YR Treasury 4.980 +0.126 10 YR Treasury 4.955 +0.136 30 YR Treasury 5.084 +0.153 Pricing as of: 10/25 5:31PM EST Latest Video Recession is coming on the horizon, says Apollo Global's Slok High mortgage rates could boost GSE reform, says Cowen's Jaret Seiberg The labor market is heading to a slowing next year, says Citi's Steven Wiet... WSJ's Greg Ip breaks down why the Fed can't fix the deficit Around the Web CNBC What it will take to make homes affordable again for millions of Americans CNBC How the long-awaited recession became a 'richsession' for America's wealthy Calculated Risk Blog New Home Sales increase to 759,000 Annual Rate in September; Median New Home Price is Down 16% from the Peak CNBC Retirement withdrawal rules are 'crazy' this year, IRA expert says. Here's what you need to know CNBC Homebuyers must earn more than $400,000 to afford a home in the 2 priciest metro areas and New York isnt one of them Calculated Risk Blog Goldman: 2024 Housing Outlook Eye on Housing All-Cash Share of New Home Sales Climbs in Q3 CNBC Jamie Dimon rips central banks for being '100% dead wrong' on economic forecasts Calculated Risk Blog October Vehicle Sales Forecast: 16.0 million SAAR, Up 9% YoY Reuters Fed hawks, Fed doves: What U.S. central bankers say about policy CNBC Treasury yields continue retreat after 10-year slips back below 5% CNBC Treasury yields hold steady as investors assess state of economy Calculated Risk Blog Total Housing Completions Will Likely Increase Slightly in 2023; The Mix will Change

© 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.