Lower Rates or Not, Last Wee k's Applications were “Tepid”

The Thanksgiving holiday was followed by two strong weeks for mortgage applications, especially for refinancing, as mortgage rates fell. This past week, however, the lowest rates in six months failed to stir much interest among borrowers. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, eased back by 1.5 percent on a seasonally adjusted basis and was down 3.0 percent before adjustment. Refinancing, which had increased by an aggregate of 33 percent over the previous two weeks, seemed to run out of steam. The Refinance Index declined 2.0 percent from the previous week, remaining 18 percent higher than the same week in 2022. The refinance share of mortgage activity increased to 39.7 percent of total applications from 39.2 percent the previous week. [refiappschart] The seasonally adjusted Purchase Index ticked down 1.0 percent and was 4.0 percent lower on an unadjusted basis. It was 18 percent lower than during the same week in 2022. [purchaseappschart] "With the positive news about the drop in inflation, and the FOMC (Federal Open Market Committee) projections proclaiming a pivot towards rate cuts, the 30-year fixed mortgage rate reached its lowest level since June 2023, declining to 6.83 percent,” said Mike Fratantoni, MBA’s SVP and Chief Economist. "At least as of last week, borrowers' response to this rate move was rather tepid. VA refinance applications jumped 18 percent for the week, but otherwise, both refinance and purchase applications showed small declines."

December 20, 2023 Download our Mobile App: Download our Mobile App: Housing News Lower Rates or Not, Last Week's Applications were “Tepid” The Thanksgiving holiday was followed by two strong weeks for mortgage applications, especially for refinancing, as mortgage rates fell. This past week, however, the lowest rates in six months failed to stir much interest among borrowers. The M... (read more) Mortgage Rate Watch Mortgage Rates Holding Longer-Term Lows Yet Again We made the mistake of referring to mortgage rates as being "sharply sideways" yesterday--a description that's only dusted off for the most uneventful of days. Joke's on us! Today's sideways-ness was possibly even sharper! That said... (read more) MBS Commentary Surprisingly Strong Day Leaves Yields at Fresh Lows Surprisingly Strong Day Leaves Yields at Fresh Lows Nothing good happened for the bond market today--at least not in terms of economic data coming in weaker or Fed speakers saying new and supportive things.&n... (read more) Rob Chrisman Credit and Verification, Broker, Borrower Portal, Accounting Products; Mortgage Credit News Here’s what happened when a company relied on forecasts and rate predictions during late 2022 for its business in 2023. You’d have a come-apart! Speaking of losing one’s cool, how do you think IMBs feel about this Bloomberg story about how mortgage f... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.64% +0.00% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.64% 0.00 0.00 15 Yr. Fixed 6.05% -0.08 0.00 30 Yr. FHA 6.10% -0.01 0.00 30 Yr. Jumbo 7.01% -0.02 0.00 5/1 ARM 6.17% -0.07 0.00 30 Yr. VA 6.11% 0.00 0.00 Updates Daily - Last Update: 12/20 15 Yr. Fixed Rate 6.05% -0.08% Rate Change Points Freddie Mac 30 Yr. Fixed 6.95% -0.08 0.00 15 Yr. Fixed 6.38% +0.09 0.00 Updates Weekly - Last Update: 12/14 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.07% -0.10 0.59 15 Yr. Fixed 6.67% -0.13 0.58 30 Yr. Jumbo 7.22% -0.13 0.37 Updates Weekly - Last Update: 12/13 MBS / Treasuries UMBS 30YR 5.5 100.38 +0.14 Price / Yield Change MBS UMBS 5.5 100.38 +0.14 UMBS 6.0 101.50 +0.11 GNMA 5.5 100.50 +0.02 GNMA 6.0 101.45 +0.05 Pricing as of: 12/20 5:31PM EST 10 Year US Treasury 3.8530 -0.0780 Price / Yield Change US Treasury 2 YR Treasury 4.344 -0.097 5 YR Treasury 3.851 -0.087 7 YR Treasury 3.875 -0.084 10 YR Treasury 3.853 -0.078 30 YR Treasury 3.987 -0.053 Pricing as of: 12/20 5:31PM EST Latest Video Market is pricing in more aggressive Fed rate cuts than expected, says Prin... Top-tier office real estate will survive, says Piper Sandler's Alex Goldfar... Consumer confidence soars past expectations in best level since July Builders are preparing for a more normal spring selling season, says Deutsc... Around the Web Eye on Housing Existing Home Sales Unexpectedly Rise Amid High Mortgage Rates Marketwatch Consumer confidence snaps back at year end CNBC Treasury yields dip slightly as Fed trajectory remains in focus Calculated Risk Blog NAR: Existing-Home Sales Increased to 3.82 million SAAR in November Marketwatch Barkin says Fed makes 'good progress' on taming inflation, but too early to talk rate cuts Calculated Risk Blog Housing Starts Increased to 1.560 million Annual Rate in November Realtor.com The Very Best Advice Homeowners Heard in 2023: Do You Know It All? Reuters Fed's Bostic: No 'urgency' for rate cuts CNBC Online shopping for holidays exceeds 2020 pandemic high, CNBC economic survey shows CNBC Treasury yields down slightly as recent trend continues CNBC UK inflation rate drops more than expected to 3.9% in November CNBC How to plan a home renovation from picking an architect to managing the build CNBC CNBC Daily Open: The bulls are back on Wall Street

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