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☆ Mortgage demand falls to the lowest level since 1995 as interest rates near 8%
▼ + stars: | 2023-10-18 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +1 min

Mortgage rates last week rose for the sixth straight week, causing demand for home loans to drop to the lowest level since 1995. Total application volume fell 6.9% compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Applications for a mortgage to purchase a home dropped 6% week to week and were 21% lower than the same week one year ago. ARMs offer lower rates and can be fixed for up to 10 years before the rate resets. Mortgage rates moved even higher to start this week, with the 30-year fixed hitting 7.92% on Tuesday, according to Mortgage News Daily.

Persons: Joel Kan Organizations: Lennar Corporation, Mortgage, Mortgage News, CNBC Locations: Morristown, Morristown , New Jersey

Rates have finally trended down after 30-year mortgage rates spiked above 7.5% last week. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. 30-year Fixed Mortgage RatesLast week, the average 30-year fixed mortgage rate was 7.49%, according to Freddie Mac. 15-year Fixed Mortgage RatesAverage 15-year mortgage rates were 6.78% last week, a six-point increase compared to the prior week, according to Freddie Mac data. But average 30-year fixed rates will likely remain somewhere in the 7% to 8% range in the near term.

Persons: Joel Kan, homebuyers, you'll, Freddie Mac Organizations: Mortgage Bankers Association, ARM, Zillow, Federal Reserve Locations: Chevron

☆ Adjustable-rate mortgage demand spiked last week. Here's why.
▼ + stars: | 2023-10-11 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

The average rate on the 30-year fixed mortgage rose to the highest level since 2000 last week, but rates on adjustable-rate mortgages fell. But the average contract interest rate for 5/1 ARMs decreased to 6.33% from 6.49%. ARMs usually offer much lower rates because they have shorter fixed terms. Applications for a mortgage to purchase a home rose 1% for the week and were 19% lower than the same week one year ago. "In this first two weeks of October, as anticipated, inventories have taken a jump, but then because interest rates have taken a jump too, we're seeing less buyers.

Persons: Joel Kan, Kan, Lisa Resch Organizations: Mortgage, ARM, Washington , D.C, Compass Locations: Washington ,

☆ Mortgage rates reach highest since November 2000 - MBA
▼ + stars: | 2023-10-04 | by ( Amina Niasse | ) www.reuters.com time to read: +2 min

REUTERS/Sarah Silbiger/File Photo Acquire Licensing RightsNEW YORK, Oct 4 (Reuters) - U.S. mortgage interest rates rose to the highest since November 2000 last week, helping to drive home loan application volumes to the lowest in 27 years, a report on Wednesday said. “Mortgage rates continued to move higher last week as markets digested the recent upswing in Treasury yields," said Joel Kan, the MBA's vice president and deputy chief economist. Yields on the 10-year Treasury note , which is the main benchmark for determining mortgage rates, have climbed to their highest since the global financial crisis, hitting 4.8% this week. Moreover, the spread between 10-year note yields and 30-year mortgage rates are near record-wide levels, which has also exacerbated the rise in borrowing costs for prospective homebuyers. Last week also marked the fourth consecutive week that mortgage rates rose.

Persons: Sarah Silbiger, Joel Kan, Kan, Amina Niasse, Andrea Ricci Organizations: REUTERS, Mortgage Bankers Association, “, Federal Reserve, Thomson Locations: Washington , U.S

☆ Mortgage demand drops to the lowest level since 1996, as interest rates head toward 8%
▼ + stars: | 2023-10-04 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

"As a result, mortgage applications ground to a halt, dropping to the lowest level since 1996." Just two years ago, when rates were setting multiple record lows, refinance demand made up roughly three-quarters of all mortgage applications. The ARMs made up 8% of purchase applications, up from 6.7% about a month ago, when interest rates were slightly lower. ARM's offer lower rates but are fixed for a shorter term, usually five or 10 years. Investors are responding to better-than-expected economic data, which could push the Federal Reserve to be more aggressive in its higher interest rate policy.

Persons: Joel Kan, Refinances, Kan Organizations: Mortgage, Federal Reserve

☆ Mortgage demand shrinks as interest rates hit the highest level in nearly 23 years
▼ + stars: | 2023-09-27 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage interest rates just hit a level not seen since the year 2000. The 30-year fixed jumbo mortgage rate increased to 7.34%, the highest rate in the history of the MBA's jumbo rate series dating back to 2011. After record low interest rates throughout the first few years of the pandemic, and a refinance boom, there are precious few borrowers now with mortgage rates high enough to benefit from a refinance. Today's potential buyers are facing an unprecedented dynamic of a historically low supply of homes for sale, coupled with both rising interest rates and rising prices. Interest rates continued to move higher this week, according to a separate survey from Mortgage News Daily.

Persons: Joel Kan Organizations: Mortgage, Market, Mortgage News

☆ Weekly mortgage demand increases, driven by a strange surge in refinancing
▼ + stars: | 2023-09-20 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage rates rose again last week, and so did demand for refinances, which at face value doesn't make a lot of sense. Applications to refinance a home loan jumped 13% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Refinancing demand usually moves in the same direction as mortgage rates, but that was not the case. Applications for a mortgage to purchase a home increased 2% for the week and were 26% lower than the same week one year ago. "Purchase applications increased for conventional and FHA loans over the week," said Joel Kan, an MBA economist in a release.

Persons: Joel Kan, Homebuyers, Jerome Powell Organizations: Mortgage, Wednesday's, Reserve

☆ Mortgage applications rose last week, despite stubbornly high rates
▼ + stars: | 2023-09-20 | by ( Anna Bahney | ) edition.cnn.com time to read: +2 min

Washington, DC CNN —Mortgage applications rose last week, even as mortgage rates remain stubbornly high, an indication that at least some buyers are determined to move forward with a home purchase in one of the most challenging markets in decades. “Mortgage applications increased last week, despite the 30-year fixed-rate edging back up,” said Joel Kan, MBA’s vice president and deputy chief economist. The increase in total mortgage applications was driven higher by a surprise increase in applications to refinance a mortgage. Refinance applications climbed 13% from the previous week, but were still almost 30% below the same week one year ago. The MBA noted that this week’s data is compared to the prior week’s data, which included an adjustment for the Labor Day holiday.

Persons: ”, Joel Kan, Jerome Powell, Kan, homebuyers, Black Knight Organizations: DC CNN —, Mortgage, Association, “, Labor Locations: Washington, Black

☆ Mortgage demand stalls at a level not seen since 1996
▼ + stars: | 2023-09-13 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Higher mortgage rates continue to take their toll on mortgage demand, especially for refinancing. Total mortgage application volume dropped 0.8% last week compared to the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. The refinance share of mortgage activity decreased to 29.1% of total applications from 30.0% the previous week. ARMs offer lower interest rates but are deemed riskier because their rates are fixed for a shorter term. "Mortgage applications decreased for the seventh time in eight weeks, reaching the lowest level since 1996," said Joel Kan, a Mortgage Bankers Association economist, in a release.

Persons: Joel Kan, Matthew Graham Organizations: Mortgage, refinances, Mortgage Bankers Association, Mortgage News

These are tough times for the housing market. Meanwhile on Wednesday, the Mortgage Bankers Association said mortgage applications have plunged 28% since last year and are now at the lowest level since late 1996. After two years of a pandemic-fueled housing market frenzy and another year of rising rates and tight inventory, consumers are weary. During the pandemic, as the Federal Reserve moved to lower interest rates, mortgage rates fell to 3% and below, prompting a wave of refinancings. “Mortgage applications declined to the lowest level since December 1996, despite a drop in mortgage rates,” said Joel Kan, deputy chief economist at the Mortgage Bankers Association.

Persons: Freddie Mac’s, ”, Lisa Sturtevant, ” Sturtevant, Joel Kan, Redfin, Niko Voutsinas Organizations: Mortgage Bankers Association, National Association of Home Builders, Housing, Bright MLS, “, Federal Reserve, Mortgage, Association Locations: Washington, Chicago

The MBA also reported that the average 30-year mortgage rate applicants received fell to 7.21%, a 10-basis-point decrease from the week before. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's interest rates will affect your monthly payments. 30-Year Fixed Mortgage RatesLast week's average 30-year fixed mortgage rate was 7.18%, according to Freddie Mac. 15-Year Fixed Mortgage RatesAverage 15-year mortgage rates were 6.55% last week, according to Freddie Mac data. Mortgage rates increased dramatically in 2022 and have been volatile so far in 2023, but they're expected to trend down later this year.

Persons: they've, Joel Kan, you'll, Freddie Mac Organizations: Mortgage, Survey, Zillow, Federal Reserve Locations: Chevron

☆ Mortgage demand drops to 27-year low as interest rates pull back
▼ + stars: | 2023-09-06 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

After rising sharply for several weeks, mortgage interest rates pulled back slightly last week, but not enough to revive mortgage demand. Total mortgage application volume fell 2.9% last week, compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. "Mortgage applications declined to the lowest level since December 1996, despite a drop in mortgage rates," said Joel Kan, an MBA economist. "Prospective buyers remain on the sidelines due to low housing inventory and elevated mortgage rates," Kan added. Mortgage rates turned higher again to start this week, and more economic data out in the coming days could impact rates further.

Persons: Joel Kan, Kan Organizations: Mortgage Locations: Los Angeles , California

☆ Home affordability is the worst it has been since 1984
▼ + stars: | 2023-08-24 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

Washington, DC CNN —Buying a house requires a much bigger slice of people’s income now — making this the most unaffordable housing market since 1984, by one measure. The number of cost-burdened renters increased by 1.2 million, to a record 21.6 million households, between 2019 and 2021. In all, 40.6 million households were housing-cost burdened in 2021, including 20.3 million who were severely burdened. Affordability picture remains grim this yearHopeful house hunters continued to face challenging affordability conditions in July as rising mortgage rates and historically low housing inventory pushed prices higher, said Edward Seiler, the Mortgage Bankers Association’s associate vice president for housing economics. “Unfortunately, given today’s lack of inventory and affordability levels, it may take years before home affordability returns to more ‘normal’ levels,” he said.

Persons: Black Knight, Knight, “, ”, Andy Walden, Edward Seiler, Seiler, Joel Kan, Walden, ” It’s Organizations: DC CNN, Federal Reserve, Black, Joint Center for Housing Studies of Harvard University, Mortgage, Moody’s Investors Service Locations: Washington

☆ Americans are applying for mortgages at the lowest rate in 28 years
▼ + stars: | 2023-08-23 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

US mortgage applications for home purchases fell to their lowest mark in 28 years, Mortgage Bankers Association data showed. Wednesday data from the Mortgage Bankers Association showed that mortgage applications for homes fell for the sixth straight week to hit the lowest level since 1995. AdvertisementAdvertisementThe MBA's survey covers 75% of all US retail residential mortgage applications, and it's been conducted every week for over three decades. Today's housing market is even more unaffordable than it was at the peak leading up to the 2008 financial crisis. A separate data release on Tuesday from the National Association of Realtors showed existing home sales decreased 2.2% in July, falling to the lowest level since the start of 2023.

Persons: omebuyers, Joel Kan, it's, Goldman Sachs Organizations: Mortgage, Association, Service, Atlanta, National Association of Realtors Locations: Wall, Silicon

☆ Mortgage demand from homebuyers drops to a 28-year low as interest rates soar
▼ + stars: | 2023-08-23 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage rates jumped last week to the highest level in 23 years, pushing mortgage demand from homebuyers to the lowest level in 28 years. Total mortgage application volume fell 4.2% last week, compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Potential buyers are dealing not only with high interest rates and high prices, but extremely low supply. "Some homebuyers are looking to lower their monthly payments by accepting some interest rate risk after the initial fixed period," noted Kan. Mortgage rates continued to climb this week and are now right around 7.5% according to Mortgage News Daily.

Persons: Joel Kan, Kan Organizations: Mortgage, Treasury, National Association of Realtors, Mortgage News Locations: homebuyers

☆ Weekly mortgage demand drops again, as interest rates match a 22-year high
▼ + stars: | 2023-08-16 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage rates rose for the third straight week last week, matching a 22-year high. As a result, mortgage demand dropped as well. Total mortgage application volume was 29% lower than the same week one year ago, according to the Mortgage Banker's Association's seasonally adjusted index. That was the third straight weekly increase and the highest level since October 2022, which also matches a high level seen in 2001. As a result, mortgage demand from homebuyers was essentially flat week to week and 26% lower than the same week one year ago.

Persons: Joel Kan Organizations: Federal Housing Administration, Mortgage News

☆ Mortgage demand drops again after FHA loan interest rate hits 21-year high
▼ + stars: | 2023-08-09 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage interest rates soared across the board last week, with the rate on the government's low down payment option increasing to the highest level in 21 years. That hit mortgage demand hard, with total application volume dropping 3.1% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. The average rate for jumbo loans hit 7.04%. High mortgage rates are not only making it harder to afford a home, they're keeping current homeowners in place. Mortgage rates have held over 7% to start this week, according to a separate survey from Mortgage News Daily.

Persons: Joel Kan Organizations: Mortgage, Federal Housing Administration, Treasury, Mortgage News Locations: Parkland , Florida

☆ U.S. mortgage rates spike to highest since November, approach 22-year high
▼ + stars: | 2023-08-09 | by ( Safiyah Riddle | ) www.reuters.com time to read: +1 min

New townhomes are seen under construction while building material supplies are in high demand in Tampa, Florida, U.S., May 5, 2021. REUTERS/Octavio JonesAug 9 (Reuters) - The average U.S. 30-year mortgage rate jumped to a nine-month peak on Wednesday and hit the second-highest rate since 2001, as interest rates reacted sharply to a downgrading of U.S. government debt. Rates have not been that high since November 2022, which were then the highest levels since 2001. Recent data has suggested that the home price cooling engineered by the Federal Reserve's aggressive interest rate hiking campaign could be slowing down. But the recent data showing higher mortgage rates and crimped demand could be welcome news for overall shelter costs and the U.S. central bank's effort to bring inflation down.

Persons: Octavio Jones, Joel Kan, Safiyah Riddle, Andrea Ricci Organizations: REUTERS, Mortgage, Association, Association's, Federal, Thomson Locations: Tampa , Florida, U.S

☆ Mortgage credit availability sinks to decade low
▼ + stars: | 2023-08-08 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +1 min

As if higher mortgage rates weren't enough, it was harder even to qualify for a mortgage in July than it has been in a decade, according to the Mortgage Bankers Association. While availability for all loan types dropped, the component of the index for jumbo loans decreased the most, as banks face increasing liquidity issues. Jumbo loans cannot be sold to Fannie Mae and Freddie Mac, so they are usually held on bank balance sheets. Higher mortgage rates have caused demand for home loans to drop. A drop in cash-out refinance programs was a major component of the overall drop in credit availability.

Persons: Fannie Mae, Freddie Mac, Joel Kan Organizations: Mortgage, Association

☆ Qualifying for a mortgage is getting harder, as credit availability is the tightest in a decade
▼ + stars: | 2023-08-08 | by ( Anna Bahney | ) edition.cnn.com time to read: +2 min

A decline in the Mortgage Credit Availability Index indicates that lending standards are tightening, while increases in the index would indicate loosening credit. Mortgage credit availability has been tightening since the spring, according to MBA, with a slight uptick in availability in June, when levels were essentially unchanged. Credit availability then fell again in July, to a decade low. In July, the conventional loan index, which examines non-government loan programs, decreased 0.5%. The government loan index, which examines Federal Housing Administration, Department of Veterans Affairs and US Department of Agriculture loan programs, was down by 0.1%.

Persons: Joel Kan, Freddie Mac, Fannie Mae, Kan, ” Kan Organizations: DC CNN, Mortgage Bankers Association, ICE Mortgage Technology, Mortgage, Housing Administration, Department of Veterans Affairs, US Department of Agriculture Locations: Washington

See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. Mortgage Rates for Buying a Home30-year Fixed Mortgage Rates Increase (+0.21%)The current average 30-year fixed mortgage rate is 6.83%, up 21 basis points since this time last week. 20-year Fixed Mortgage Rates Climb (+0.39%)The average 20-year fixed mortgage rate is up from last week and sits at 6.47%. 15-year Fixed Mortgage Rates Go Up (+0.20%)The average 15-year fixed mortgage rate is 6.09%, a 20-basis-point increase from last week. Mortgage Refinance Rates30-year Fixed Refinance Rates Hold Steady (no change)The average 30-year refinance rate is 7.29%, which is exactly where it was last week.

Persons: Joel Kan, you'll, refinance, It's Organizations: Mortgage, Survey, Zillow Locations: Chevron

☆ Mortgage demand from homebuyers drops for the third straight week as interest rates rise
▼ + stars: | 2023-08-02 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +1 min

Mortgage rates have been holding at high levels for several weeks now, and that is taking its toll on homebuyers. Mortgage applications to purchase a home fell 3% last week compared with the previous week, according to the MBA's seasonally adjusted index. "The purchase index decreased for the third straight week to its lowest level since the beginning of June," said Joel Kan, an MBA economist. Mortgage rates began this week higher and could continue to rise ahead of the all-important monthly employment report expected to be released Friday. If those fears are realized, rates could be at 20-year highs by the end of this week," said Matthew Graham, chief operating officer at Mortgage News Daily.

Persons: Joel Kan, Matthew Graham Organizations: Mortgage Bankers Association, Mortgage News Locations: Hollywood , Florida

☆ Mortgage demand drops as interest rates remain stubbornly high
▼ + stars: | 2023-07-26 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage rates didn't move at all last week, and are still sitting near a recent high. Most borrowers today carry interest rates far lower than the current rate and would therefore not benefit from a refinance. Mortgage rates moved higher to start this week, crossing over 7% Tuesday to 7.04%, according to Mortgage News Daily. Rates will likely move later today, following the latest interest rate decision and press conference at the Federal Reserve. In other words, mortgage rates CAN move lower tomorrow even if the Fed hikes.

Persons: Joel Kan, Jerome, Powell, Matthew Graham Organizations: Mortgage, Federal Housing Administration, Mortgage News, Federal Reserve

☆ Shopping for a home? There’s a lot working against you right now
▼ + stars: | 2023-07-25 | by ( Anna Bahney | ) edition.cnn.com time to read: +6 min

In recent weeks, as mortgage rates closed in on 7%, affordability has worsened. Nationally, it takes about 36% of the median household income to make the average mortgage payment — more than the recommended 30% allowance for housing. The Mortgage Credit Availability Index fell by 3.1% to 96.5 in May, the lowest level since January 2013, and was essentially unchanged in June. The MBA index that tracks jumbo loans — loans that are larger than conforming loan limits — saw its second monthly contraction, as some financial institutions reduce their appetite for larger loans that aren’t backed by the government. Mortgage rates are expected to drop the second half of this year as inflation continues to cool, with economists and housing analysts forecasting rates to end the year around 6%.

Persons: Nick Gaylord, “ I’ve, ” Gaylord, it’s, “ I’m, ”, Gaylord, “, Black Knight, Knight, ” Joel Kan, Department of Veterans Affairs —, — Organizations: DC CNN, CNN, Mortgage Bankers Association, ICE Mortgage Technology, Federal Housing Administration, US Department of Agriculture, Department of Veterans Affairs, National Association of Realtors Locations: Washington, Minneapolis

☆ Mortgage-refinance demand recovers some after rates come off recent highs
▼ + stars: | 2023-07-19 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage interest rates pulled back last week after jumping sharply to start July. Total mortgage application volume rose 1.1% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. "Mortgage rates declined last week, as markets responded positively to incoming data showing that U.S. inflation continues to cool," said Joel Kan, an MBA economist, in a release. The refinance share of mortgage activity increased to 28.4% of total applications from 26.8% the previous week. Mortgage rates haven't budged much to start this week, as they're still hanging in the high 6% range on the 30-year fixed.

Persons: Blaine, Joel Kan Organizations: Mortgage, Federal Locations: Minnesota

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