Mortgage App Volume Falls as Rates Top 7 Percent

The downturn in mortgage application volume extended to a third straight week over the period ending August 4. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, decreased 3.1 percent on a seasonally adjusted basis and was down 4.0 percent before adjustment when compared to the prior week. The Refinance Index decreased 4.0 percent and was 37 percent lower than the same week one year ago. Refinancing applications accounted for 28.7 percent of the total, down from 28.9 percent the previous week. [refiappschart] The seasonally adjusted Purchase Index fell 3.0 percent week-over-week on both an adjusted and unadjusted basis . Purchasing volume was 27 percent below its level during the same week in 2022. [purchaseappschart] “Treasury yields rates rose last week and mortgage rates followed suit, due to a combination of the Treasury’s funding announcement and the downgrading of the U.S. government debt rating. Rates increased for all loan types in our survey, with the 30-year fixed mortgage rate increasing to 7.09 percent, the highest level since November 2022,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “ Additionally, the rate for FHA mortgages increased to 7.02 percent, the highest rate since 2002. Not surprisingly, mortgage applications continued to decline given these higher rates, with overall application counts falling for the third consecutive week, as both purchase and refinance activity declined. The purchase index fell for the fourth consecutive week, as homebuyers continue to struggle with low for sale inventory and elevated mortgage rates.”

August 9, 2023 Download our Mobile App: Download our Mobile App: Housing News Mortgage App Volume Falls as Rates Top 7 Percent The downturn in mortgage application volume extended to a third straight week over the period ending August 4. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, decreased 3.1 percent on a seasonally adj... (read more) Mortgage Rate Watch Rates Remain in Narrow Range Ahead of Key Inflation Data Mortgage rates continued to move in a fairly narrow, sideways range on Wednesday--a trend that is very much in line with expectations from last Friday. At the time, rates moved sharply lower off long-term highs. The catalyst was a tame jo... (read more) MBS Commentary 10yr Auction Last Hurdle Before Thursday's CPI Today is shaping up to be much less interesting than yesterday. Bonds didn't move nearly as much in the overnight session and began the day in roughly unchanged territory. There have been modest gains early, but the fact that they were dr... (read more) Rob Chrisman TPO, Due Diligence, Automation, Servicing Products; LD Earnings; Events and Training; Moody's Bank Downgrades “Once things were so tough for me, I worked at a cheap pizza shop to get by. I kneaded the dough.” Things are indeed tough out there. The other day I caught my cat Myrtle at the keyboard, apparently trying to show my new granddaughter Kozette how to ... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.05% +0.01% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.05% +0.01 0.00 15 Yr. Fixed 6.42% +0.02 0.00 30 Yr. FHA 6.71% +0.01 0.00 30 Yr. Jumbo 7.13% 0.00 0.00 5/1 ARM 6.98% -0.01 0.00 30 Yr. VA 6.70% +0.02 0.00 Updates Daily - Last Update: 8/9 15 Yr. Fixed Rate 6.42% +0.02% Rate Change Points Freddie Mac 30 Yr. Fixed 6.90% +0.09 0.00 15 Yr. Fixed 6.25% +0.14 0.00 Updates Weekly - Last Update: 8/3 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.93% +0.06 0.68 15 Yr. Fixed 6.39% +0.02 0.78 30 Yr. Jumbo 6.89% -0.01 0.58 Updates Weekly - Last Update: 8/2 MBS / Treasuries UMBS 30YR 5.5 99.08 +0.11 Price / Yield Change MBS UMBS 5.5 99.08 +0.11 UMBS 6.0 100.44 +0.02 GNMA 5.5 99.20 +0.17 GNMA 6.0 100.34 +0.02 Pricing as of: 8/9 5:31PM EST 10 Year US Treasury 4.0140 -0.0140 Price / Yield Change US Treasury 2 YR Treasury 4.804 +0.044 5 YR Treasury 4.135 +0.021 7 YR Treasury 4.078 +0.002 10 YR Treasury 4.014 -0.014 30 YR Treasury 4.176 -0.036 Pricing as of: 8/9 5:31PM EST Latest Video REITs beginning to break the 18-month downtrend, says BTIG's Jonathan Krins... Next year's real estate market could look a lot like this year, says Compas... The Fed's truly data dependent now and they'll want to keep options open: F... Credit card debt is growing with the increased cost of living, says Primeri... Around the Web CNBC Thursday's inflation data may be low, but don't expect the Fed to declare 'mission accomplished' yet CNBC These charts show what has Moodys worried about regional banks including U.S. Bank and Fifth Third Eye on Housing Mortgage Activity Decreases for Third Straight Week cnbc Moody’s cuts ratings of 10 U.S. banks and puts some big names on downgrade watch CNBC Mortgage credit availability sinks to decade low Calculated Risk Blog Atlanta Fed: Home Ownership Affordability Monitor CNBC Treasury yields slightly lower as investors brace for inflation print NY Fed Credit Card Markets Head Back to Normal after Pandemic Pause CNBC Philadelphia Fed President Patrick Harker suggests interest rate hikes are at an end Calculated Risk Blog 1st Look at Local Housing Markets in July Reuters Italian banks recover after government caps windfall tax CNBC 10-year Treasury yield falls as investors weigh interest rate outlook CNBC European markets set for higher open with inflation, Italian banks in focus

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