Application Volume Plunges to 25 Year Low

Application Volume Plunges to 25 Year Low

October 5, 2022 There were two storms brewing last week and each contributed to driving mortgage applications to generational lows. The Mortgage Bankers Association (MBA) said the continuing rise in interest rates and the devastating hurricane that hit Florida and the Carolina‚Äôs contributed to a double-digit decline in its indices that measure mortgage application volume. The Market Composite Index for the week ended September 30 was down 14.2 percent on a seasonally adjusted basis from one week earlier and 14 percent before adjustment. The Refinance Index fell 18 percent from the previous week and was 86 percent lower than the same week one year ago. The refinance share of mortgage activity dipped to 29.0 percent from 30.2 percent the previous week. The Purchase Index dropped by 13 percent week-over-week on both…
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Huge Reversal For Mortgage Rates. No Promises of Sustainability

Thursday- September 29, 2022 If you’re just getting caught up, mortgage rates broke above 7% on Wednesday for the first time since 2002.  Yesterday was an entirely different day.  In fact, rates dropped not only back below Wednesday’s levels, but all the way back to the end of last week (Thursday afternoon-ish, depending on the lender).  This wasn’t necessarily the case Wednesday morning, but almost every lender adjusted their rate offerings in the middle of the day–in many cases multiple times. Mortgage rates are based on bonds.  When bonds rally enough, mortgage lenders issue these “mid-day reprices.”   Why were bonds so happy?  Happy isn’t the right word for it.  “Relieved” would be more appropriate.  A fiscal policy announcement in the UK is at the heart of all of the drama over…
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