Refinancing Activity Responds to Rate Drop

Borrowers took advantage of lower mortgage rates again last week, seizing the opportunity, especially for refinancing. The Mortgage Bankers Association (MBA) said its seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, increased 7.4 percent on a seasonally adjusted basis compared to the prior week and was 6.0 percent higher on an unadjusted basis. The Refinance Index spiked a 19 percent gain week-over-week and was 27 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 39.2 percent of total applications, its largest share since March 2022, up from 34.7 percent the previous week. [refiappschart] The seasonally adjusted Purchase Index rose by 4.0 percent from a week earlier although was 1.0 percent lower before adjustment and 18 percent below its level during the same week in 2022. [purchaseappschart] “Mortgage rates dropped last week, as incoming data point to a slowing economy and support a pivot by the Federal Reserve to begin cutting rates next year. The average 30-year fixed mortgage rate declined to 7.07 percent, the lowest level since July,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Borrowers who had seen rates near 8 percent earlier this fall are now seeing some lenders quote rates below 7 percent. Refinance volume picked up in response to this drop in rates, with a particularly notable increase for FHA and VA refinance applications. Purchase volume was running about 18 percent below last year’s pace, as prospective homebuyers are still challenged by a lack of inventory, even if rates have decreased. ”

December 13, 2023 Download our Mobile App: Download our Mobile App: Housing News Refinancing Activity Responds to Rate Drop Borrowers took advantage of lower mortgage rates again last week, seizing the opportunity, especially for refinancing. The Mortgage Bankers Association (MBA) said its seasonally adjusted Market Composite Index, a measure of mortgage loan application ... (read more) Mortgage Rate Watch Rates Plummet to Lowest Levels Since May, 2023 After Fed Announcement Today brought the scheduled Fed policy announcement that we've been waiting for and mortgage rates plummeted as a result. So does that mean the Fed cut rates? No... The Fed kept its policy rate perfectly unchanged, as expected. In ... (read more) MBS Commentary Should we Fear a Mismatch Between Market Expectations and The Fed's Reality? The Fed has a way to convey where it sees the Fed Funds Rate in the coming years via the dot plot. The bond market has a way to make its own bets via Fed Funds Futures (and one could argue that cash trading also captures quite a bit of Fed expe... (read more) Rob Chrisman Jumbo, Non-QM, Accounting, Servicing, Processing Tools; Conv. Conforming News; STRATMOR on Customer Experience “I'm at a place in my life where errands are starting to count as going out.” No one’s getting any younger, and like time marching on, technology does as well. For history buffs, here is a recording of the voice of someone born in 1800, at the 13:30 ... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.82% -0.27% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.82% -0.27 0.00 15 Yr. Fixed 6.29% -0.21 0.00 30 Yr. FHA 6.23% -0.19 0.00 30 Yr. Jumbo 7.25% -0.28 0.00 5/1 ARM 6.42% -0.23 0.00 30 Yr. VA 6.25% -0.17 0.00 Updates Daily - Last Update: 12/13 15 Yr. Fixed Rate 6.29% -0.21% Rate Change Points Freddie Mac 30 Yr. Fixed 7.03% -0.19 0.00 15 Yr. Fixed 6.29% -0.27 0.00 Updates Weekly - Last Update: 12/7 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.17% -0.20 0.60 15 Yr. Fixed 6.80% -0.08 0.77 30 Yr. Jumbo 7.35% -0.19 0.44 Updates Weekly - Last Update: 12/6 MBS / Treasuries UMBS 30YR 5.5 100.14 +0.95 Price / Yield Change MBS UMBS 5.5 100.14 +0.95 UMBS 6.0 101.44 +0.64 GNMA 5.5 100.48 +0.72 GNMA 6.0 101.61 +0.48 Pricing as of: 12/13 5:31PM EST 10 Year US Treasury 4.0260 -0.1840 Price / Yield Change US Treasury 2 YR Treasury 4.435 -0.300 5 YR Treasury 3.977 -0.250 7 YR Treasury 4.023 -0.226 10 YR Treasury 4.026 -0.184 30 YR Treasury 4.181 -0.134 Pricing as of: 12/13 5:31PM EST Latest Video Fed holds rates steady, indicates three cuts coming in 2024 Fed Chair Powell: Hiking rates isn't the base case anymore Fed Chair Powell: We're at or near the peak rate for this cycle Fed officials haven't reached consensus on potential rate cuts, says Dennis... Around the Web CNBC Fed lowers inflation forecast for 2024, seeing core PCE falling to 2.4% Eye on Housing Largest Increase in Mortgage Activity Since March CNBC Fed meeting live updates: Traders focusing on central bank's rate cut forecast Eye on Housing Building Materials Prices Inch Higher in November Calculated Risk Blog Part 1: Current State of the Housing Market; Overview for mid-December CNBC Here's where deflation was in November 2023 in one chart Calculated Risk Blog Part 2: Current State of the Housing Market; Overview for mid-December Marketwatch Bond yields always fall before Federal Reserve pivots to cut interest rates, research says CNBC Wholesale prices held flat in November, providing another encouraging inflation signal CNBC Heres the inflation breakdown for November 2023 in one chart CNBC Treasury yields dip as investors look to Fed rate decision, policy guidance CNBC European Central Bank to focus on shrinking balance sheet as markets bet on rate cuts CNBC Gas prices have fallen 19% since September, hit lowest point of year ahead of holiday

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