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US mortgage applications for both home purchases and refinancing dropped last week to the lowest levels since August, hobbled by a recent surge in mortgage rates.
Mortgage Bankers Association’s gauge of home purchases declined 5.1% in the week ended Oct. 18, marking the third straight decrease. The refinancing index retreated another 8.4% last week after slumping by the most since March 2020.
The contract rate on a 30-year fixed mortgage held at 6.52%, the data released Wednesday showed. A month ago, the rate stood at a two-year low of 6.13%.
Mortgage rates have been moving up in concert with US Treasury yields on expectations Federal Reserve policymakers will be more prudent with interest-rate cuts as the economy proves resilient. Higher home financing costs, along with still-elevated asking prices, risk extending a more than year-long period of sluggish housing demand.
Yields on 10-year Treasury notes rose on Tuesday to 4.2%, the highest since late July and up from a 15-month low of 3.6% on Sept. 17 — one day before the Fed lowered borrowing costs by half a point.
The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.
Originally Published:
US mortgage applications for both home purchases and refinancing dropped last week to the lowest levels since August, hobbled by a recent surge in mortgage rates.
Mortgage Bankers Association’s gauge of home purchases declined 5.1% in the week ended Oct. 18, marking the third straight decrease. The refinancing index retreated another 8.4% last week after slumping by the most since March 2020.
The contract rate on a 30-year fixed mortgage held at 6.52%, the data released Wednesday showed. A month ago, the rate stood at a two-year low of 6.13%.
Mortgage rates have been moving up in concert with US Treasury yields on expectations Federal Reserve policymakers will be more prudent with interest-rate cuts as the economy proves resilient. Higher home financing costs, along with still-elevated asking prices, risk extending a more than year-long period of sluggish housing demand.
Yields on 10-year Treasury notes rose on Tuesday to 4.2%, the highest since late July and up from a 15-month low of 3.6% on Sept. 17 — one day before the Fed lowered borrowing costs by half a point.
The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.
Originally Published:
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
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