The mortgage market seemed to be in a wait-and-see mode last week as the Federal Reserve signaled a might, maybe, we are thinking about it, approach to a September rate cut. In the interim, most interest rates inched lower. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, increased 0.5 percent on a seasonally adjusted basis from one week earlier and fell 1.0 percent on an unadjusted basis. The Refinance Index dipped 0.1 percent from the previous week but has now climbed to an 85 percent lead over the same week one year ago. The refinance share of applications increased to 46.6 percent of the total, up from 46.3 percent the prior week. [refiappschart] The seasonally adjusted Purchase Index increased 1.0 percent but was 1.0 percent lower before adjustment. Purchase applications were 9.0 percent lower than the same week one year ago. [purchaseappschart] “Mortgage rates declined for the fourth consecutive week, with the 30-year fixed rate at 6.44 percent, the lowest since April 2023. Rates have now come down more than 80 basis points from a year ago,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Mortgage applications were slightly higher, driven by marginally stronger purchase activity. Refinance applications were essentially unchanged but are still 85 percent higher than last year as borrowers continue to act – particularly FHA and VA borrowers. As observed in recent weeks, despite lower rates, purchase applications have not moved much. Prospective homebuyers are staying patient now that rates are moving lower and for-sale inventory has started to increase.”
MBS Commentary | Without Major Data, Bonds Remain Quiet | Without Major Data, Bonds Remain Quiet While it makes riveting analysis a challenge, it's not necessarily a bad thing for the bond market to be incredibly boring sideways right now. After all, we've had... (read more) |
| Mortgage Rate Watch | Mortgage Rates Lower Despite Bond Market Weakness | On Wednesday, the average mortgage lender was quoting top tier, conventional 30yr fixed rates at the 2nd lowest level in more than a year. That's counterintuitive considering the modest losses in the bond market (weaker bonds = higher rates, al... (read more) |
| | 30 Yr. Fixed Rate | 6.37% -0.05% |
| Rate | Change | Points |
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Mortgage News Daily | 30 Yr. Fixed | 6.37% | -0.05 | 0.00 | 15 Yr. Fixed | 5.92% | -0.04 | 0.00 | 30 Yr. FHA | 5.75% | -0.11 | 0.00 | 30 Yr. Jumbo | 6.60% | -0.05 | 0.00 | 7/6 SOFR ARM | 6.30% | -0.01 | 0.00 | 30 Yr. VA | 5.74% | -0.14 | 0.00 | Updates Daily - Last Update: 8/28 | |
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15 Yr. Fixed Rate | 5.92% -0.04% |
| Rate | Change | Points |
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Freddie Mac | 30 Yr. Fixed | 6.46% | -0.03 | 0.00 | 15 Yr. Fixed | 5.62% | -0.04 | 0.00 | Updates Weekly - Last Update: 8/22 | Rate | Change | Points |
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Mortgage Bankers Assoc. | 30 Yr. Fixed | 6.44% | -0.06 | 0.54 | 15 Yr. Fixed | 5.88% | -0.16 | 0.68 | 30 Yr. Jumbo | 6.75% | +0.07 | 0.39 | Updates Weekly - Last Update: 8/28 | |
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| Price / Yield | Change |
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MBS | UMBS 5.0 | 99.58 | -0.07 | UMBS 5.5 | 100.96 | -0.07 | GNMA 5.0 | 99.93 | -0.07 | GNMA 5.5 | 100.89 | -0.07 | Pricing as of: 8/28 5:31PM EST | |
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10 Year US Treasury | 3.8359 +0.0086 |
| Price / Yield | Change |
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US Treasury | 2 YR Treasury | 3.864 | -0.038 | 5 YR Treasury | 3.662 | +0.005 | 7 YR Treasury | 3.732 | +0.002 | 10 YR Treasury | 3.836 | +0.009 | 30 YR Treasury | 4.126 | +0.006 | Pricing as of: 8/28 5:31PM EST | |
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