Small Improvement in Rates Has Little Effect on Mortgage Volume

A bit of easing in mortgage rates prompted a tiny uptick in refinancing during the week ended October 28, but overall mortgage application volume continued its long slide. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, decreased 0.5 percent on a seasonally adjusted basis from one week earlier and was 1.0 percent lower on an unadjusted basis. The Refinance Index gained 0.2 percent from the previous week but was still 85 percent lower than the same week one year ago. The refinance share of mortgage activity increased to 28.6 percent of total applications from 28.2 percent the previous week. [refiappschart] The seasonally adjusted Purchase Index decreased by 1 percent from one week earlier and was two percent lower before adjustment. It was the sixth straight week for lowering purchase mortgage volume which it now 41 percent below its level during the same week in 2021. [purchaseappschart] Joel Kan, MBA’s Vice President and Deputy Chief Economist said mortgage applications declined for the sixth consecutive week despite a slight drop in rates. “The 30-year fixed rate decreased for the first time in over two months to 7.06 percent, but remained close to its highest since 2002,” he said. “Apart from the ARM loan rate, rates for all other loan types were more than three percentage points higher than they were a year ago . These elevated rates continue to put pressure on both purchase and refinance activity and have added to the ongoing affordability challenges impacting the broader housing market, as seen in the deteriorating trends in housing starts and home sales.”

November 2, 2022 Download our Mobile App: Download our Mobile App: Housing News Small Improvement in Rates Has Little Effect on Mortgage Volume A bit of easing in mortgage rates prompted a tiny uptick in refinancing during the week ended October 28, but overall mortgage application volume continued its long slide. The Mortgage Bankers Association (MBA) said its Market Composite Index, a me... (read more) MBS Commentary What's at Stake With Today's Fed Announcement? The Fed has 8 scheduled meetings per year. 4 of them include a dot plot with each member's rate hike outlook. Those announcement days tend to produce the most volatility. Today is not one of them, but that doesn't mean we can sleep ... (read more) Rob Chrisman Non-QM Products; Low Producing LOs and Branches: Never-Ending Problem; Mortgage Apps Decline for 6th Week “Why did New Jersey get all the toxic waste and California get all the lawyers? New Jersey got to pick first.” (Hey, I don’t write ‘em.) Quips aside, California accounts for 20 or 25 percent of the nation’s residential lending, depending on who you a... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.12% +0.03% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.12% +0.03 0.00 15 Yr. Fixed 6.54% +0.04 0.00 30 Yr. FHA 6.68% -0.03 0.00 30 Yr. Jumbo 6.16% +0.01 0.00 5/1 ARM 6.75% 0.00 0.00 30 Yr. VA 6.72% -0.06 0.00 Updates Daily - Last Update: 11/2 15 Yr. Fixed Rate 6.54% +0.04% Rate Change Points Freddie Mac 30 Yr. Fixed 7.08% +0.14 0.80 15 Yr. Fixed 6.36% +0.13 1.40 5/1 Yr. ARM 5.96% +0.25 0.30 Updates Weekly - Last Update: 10/27 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.06% -0.10 0.73 15 Yr. Fixed 6.37% -0.02 1.05 30 Yr. Jumbo 6.55% +0.02 0.70 Updates Weekly - Last Update: 11/2 MBS / Treasuries UMBS 30YR 5.0 96.23 -0.36 Price / Yield Change MBS UMBS 5.0 96.23 -0.36 UMBS 5.5 98.16 -0.66 GNMA 5.0 96.86 -0.48 GNMA 5.5 98.84 -0.66 Pricing as of: 11/2 5:31PM EST 10 Year US Treasury 4.1050 +0.0569 Price / Yield Change US Treasury 2 YR Treasury 4.624 +0.073 5 YR Treasury 4.313 +0.041 7 YR Treasury 4.221 +0.050 10 YR Treasury 4.105 +0.057 30 YR Treasury 4.146 +0.047 Pricing as of: 11/2 5:31PM EST Latest Video The housing market needs to get back into balance, says Fed Chair Powell When the Fed gets to a terminal rate it's likely to stay there, says Charle... A decline in rent prices is 'well out' from where we are now, says Fed Chai... There was a baby step move the Fed is getting toward the end game, says Jef... Around the Web CNBC Fed approves 0.75-point hike to take rates to highest since 2008 and hints at change in policy ahead Calculated Risk Blog First Look at 2023 Housing Forecasts Reuters Central banks ease off on rate hike push in October CNBC The Fed is expected to raise interest rates by three-quarters of a point and then signal it could slow the pace CNBC Private payrolls rose 239,000 in October, better than expected, while wages increased 7.7%, ADP says Calculated Risk Blog MBA: Mortgage Applications Decrease in Latest Weekly Survey Eye on Housing More Prospective Buyers Are Actively Searching for a Home Eye on Housing Construction Job Market Volatility CNBC Treasury Department sold almost $1 billion of Series I bonds, a record, before Oct. 28 deadline Calculated Risk Blog BLS: Job Openings Increased to 10.7 million in September Eye on Housing September Private Residential Spending Stays Flat Calculated Risk Blog ISM Manufacturing index Declined to 50.2% in October Calculated Risk Blog Construction Spending Increased 0.2% in September

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