Mortgage Rates Rise, Application Volumes Retreat

It was unrealistic to expect last week’s strong increase in mortgage activity to be sustainable in the current volatile rate environment, and indeed it was not. The Mortgage Bankers Association said its seasonally adjusted Market Composite Index, a measure of loan application volume, which had risen 7.4 during the week ended February 3, ended last week with a decline of 7.7 percent. On an unadjusted basis it was down 7.0 percent. Refinancing had driven last week’s surge, and it led the retreat, falling 13 percent . The index was 76 percent lower than the same week in 2022. The refinance share of applications dipped to 32.0 percent of the total from 33.9 percent the previous week. [refiappschart] The volume of purchase mortgages decreased 6.0 percent on a seasonally adjusted basis and was down 5.0 percent before adjustment. Purchase activity was 43 percent lower than the same week one year ago. [purchaseappschart] “Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time. After five straight weeks of decreases, the 30-year fixed rate increased by 21 basis points to 6.39 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Mortgage applications decreased for the second time in three weeks because of these higher rates. Refinance borrowers, both rate/term and cash-out, remain on the sidelines as current rates provide little financial incentive to act.”

February 15, 2023 Download our Mobile App: Download our Mobile App: Housing News Mortgage Rates Rise, Application Volumes Retreat It was unrealistic to expect last week’s strong increase in mortgage activity to be sustainable in the current volatile rate environment, and indeed it was not. The Mortgage Bankers Association said its seasonally adjusted Market Composite Index, a m... (read more) Housing News Builder Confidence at Best Levels in Ten Years The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) shot higher in February, achieving a second monthly gain. NAHB’s chief economist Robert Dietz said the 7-point increase in the HMI brought it to 42, its highest l... (read more) Mortgage Rate Watch Mortgage Rates Climbing Back Toward 7% Rates have been rising at a reasonably quick pace for most of February. The process began in earnest after labor market data on February 3rd. Markets were forced to reassess their outlook for the short term rates controlled by the Fed and... (read more) MBS Commentary More Yield Curve Musings and Retail Sales Reaction More Yield Curve Musings and Retail Sales Reaction Retail Sales was today's big ticket data point and it came in quite a bit stronger than expected. Bonds reacted about like you'd expect with yields ris... (read more) Rob Chrisman Ginnie Delivery, Fee Collection, Processing, Insurance, Warehouse Mgt. Tools; Celebrity Home Loans' Goodbye Letter “I had a cousin who created a cold air balloon. But it never took off.” Like the intricacies of residential lending, few people are aware of the world of balloons. Meteorologists launch high-altitude balloons from the United States dozens of times ea... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.75% +0.13% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.75% +0.13 0.00 15 Yr. Fixed 5.95% +0.09 0.00 30 Yr. FHA 6.15% +0.03 0.00 30 Yr. Jumbo 6.25% 0.00 0.00 5/1 ARM 6.70% -0.02 0.00 30 Yr. VA 6.12% +0.02 0.00 Updates Daily - Last Update: 2/15 15 Yr. Fixed Rate 5.95% +0.09% Rate Change Points Freddie Mac 30 Yr. Fixed 6.12% +0.03 0.00 15 Yr. Fixed 5.25% +0.11 0.00 Updates Weekly - Last Update: 2/9 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.18% -0.01 0.64 15 Yr. Fixed 5.64% +0.14 0.63 30 Yr. Jumbo 5.96% -0.03 0.55 Updates Weekly - Last Update: 2/8 MBS / Treasuries UMBS 30YR 5.0 98.77 -0.06 Price / Yield Change MBS UMBS 5.0 98.77 -0.06 UMBS 5.5 100.17 -0.06 GNMA 5.0 99.48 -0.19 GNMA 5.5 100.77 +0.09 Pricing as of: 2/15 5:31PM EST 10 Year US Treasury 3.8090 +0.0560 Price / Yield Change US Treasury 2 YR Treasury 4.635 +0.013 5 YR Treasury 4.039 +0.034 7 YR Treasury 3.941 +0.046 10 YR Treasury 3.809 +0.056 30 YR Treasury 3.844 +0.063 Pricing as of: 2/15 5:31PM EST Latest Video Mortgage rates move higher, along with homebuilder sentiment Home builder sentiment jumps highest number since September What Lael Brainard's departure means for the Fed Homebuilder stocks strong, in spite of concern over the economy Around the Web Calculated Risk Blog Update: Some "Good News" for Homebuilders CNBC Homebuilder sentiment in February improved by the biggest amount in a decade CNBC Retail sales jump 3% in January, smashing expectations despite inflation increase CNBC Inflation rose 0.5% in January, more than expected and up 6.4% from a year ago Calculated Risk Blog Current State of the Housing Market: Overview for mid-February Eye on Housing Slow Progress for Inflation SeekingAlpha Federal Reserve is likely close to pausing rate hikes, Philly Fed's Harker says CNBC Here's the breakdown of the inflation report for January in one chart CNBC Treasury yields fall as investors digest latest inflation data Reuters Fed's Barkin says inflation risks still outweigh others Reuters Fed's Williams Says the Work to Control Too High Inflation Is Not Done Eye on Housing Single-Family Permits Declined 2022 CNBC Treasury yields fall as investors await consumer inflation data

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