Mortgage Application Volume Inches Higher as Rates Find Their Footing

A second week of declining interest rates prompted another increase in mortgage activity last week, the third in as many weeks. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, gained 3.0 percent on both a seasonally adjusted and unadjusted basis. The Refinance Index was 5 percent higher than the week ended March 10 but was down by 68 percent from the same week in 2022. Refinancing accounted for 28.6 percent of applications, up from 28.2 percent a week earlier. [refiappschart] The seasonally adjusted Purchase Index increased 2 percent from one week earlier and was up 3 percent on an unadjusted basis. Purchase activity is 36 percent lower year-over-year. [purchaseappschart] "Treasury yields declined last week, driven by uncertainty over the health of the banking sector and worries about the broader impact on the economy. Mortgage rates declined for the second week in a row, with the 30-year fixed rate dropping to 6.48 percent, the lowest level in a month,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “ However, mortgage rates have not dropped as much as Treasury rates due to increased MBS market volatility. The spread between the 30-year fixed and 10-year Treasury remained wide at around 300 basis points, compared to a more typical spread of 180 basis points.” Other Highlights from MBA’s Weekly Mortgage Applications Survey

March 22, 2023 Download our Mobile App: Download our Mobile App: Housing News Mortgage Application Volume Inches Higher as Rates Find Their Footing A second week of declining interest rates prompted another increase in mortgage activity last week, the third in as many weeks. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, ga... (read more) Mortgage Rate Watch Fed Hikes Rates; Rates Drop Sharply. Here's How That Works There was some debate as to whether or not the Federal Reserve would hike the Fed Funds Rate today, although the consensus was for a 0.25% increase. That's exactly what the Fed delivered. Additionally, markets were (and still are) betting... (read more) MBS Commentary Why Bonds Are Rallying Despite a Fed Hike and a Stubborn Dot Plot Why Bonds Are Rallying Despite a Fed Hike and a Stubborn Dot Plot Today promised to be one of the most interesting Fed days in a long time and it did not disappoint. Despite a 25bp rate hike and an even... (read more) Rob Chrisman CRM, Helpdesk, Home Insurance, Credit Reporting Products; Training and Webinars to Wrap up March Overheard last night in Northern California: “’The Empire Strips Back’” is the best parody show I’ve ever seen.” I only mention that because life goes on despite a drop in confidence in parts of the banking system, mortgage rates being sticky, and ou... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.45% -0.30% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.45% -0.30 0.00 15 Yr. Fixed 5.95% -0.22 0.00 30 Yr. FHA 5.75% -0.45 0.00 30 Yr. Jumbo 5.99% -0.20 0.00 5/1 ARM 6.51% +0.01 0.00 30 Yr. VA 5.81% -0.44 0.00 Updates Daily - Last Update: 3/22 15 Yr. Fixed Rate 5.95% -0.22% Rate Change Points Freddie Mac 30 Yr. Fixed 6.60% -0.13 0.00 15 Yr. Fixed 5.90% -0.05 0.00 Updates Weekly - Last Update: 3/16 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.48% -0.23 0.66 15 Yr. Fixed 6.02% -0.12 0.60 30 Yr. Jumbo 6.30% -0.09 0.55 Updates Weekly - Last Update: 3/22 MBS / Treasuries UMBS 30YR 5.0 99.84 +0.80 Price / Yield Change MBS UMBS 5.0 99.84 +0.80 UMBS 5.5 101.03 +0.64 GNMA 5.0 100.30 +0.73 GNMA 5.5 101.27 +0.53 Pricing as of: 3/22 5:31PM EST 10 Year US Treasury 3.4397 -0.1678 Price / Yield Change US Treasury 2 YR Treasury 3.941 -0.238 5 YR Treasury 3.513 -0.235 7 YR Treasury 3.496 -0.200 10 YR Treasury 3.440 -0.168 30 YR Treasury 3.659 -0.069 Pricing as of: 3/22 5:31PM EST Latest Video Fed Chair Powell: Activity in housing remains weak Allowing the balance sheet to run off predictably and passively is working,... Fed Chair Powell: Possible credit tightening means monetary policy has less... Banking crisis looks much different than 2008, says former Goldman CEO Lloy... Around the Web CNBC The Fed projections call for just one more rate hike this year CNBC Financial conditions are tightening after SVB's collapse and could slow the economy, Powell says CNBC Fed hikes rates by a quarter percentage point, indicates increases are near an end CNBC Here's everything the Federal Reserve is expected to do Wednesday CNBC It's been a year since the Fed began hiking rateswhere things go from here remains 'muddy' CNBC Treasury will do whatever it takes to ensure 'savings remain safe,' Yellen to tell senators Calculated Risk Blog FOMC Statement: Raise Rates 25 bp; "some additional policy firming may be appropriate" CNBC The Fed is likely to hike rates by a quarter point but it must also reassure it can contain a banking crisis CNBC Everyone's talking about Credit Suisse's risky bonds. Here's what they are and why they matter Calculated Risk Blog AIA: Architecture Billings "Slowdown Continues" in February CNBC Treasury yields dip ahead of Fed interest rate decision CNBC Credit Suisse bondholders prepare lawsuit after contentious $17 billion writedown CNBC Euro pushes higher as ECB chief Lagarde says inflation is still too high

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