Latest news with #JoelKan
CNBC
2 days ago
- Business
- CNBC
Mortgage demand drops to lowest level since May, as interest rates stall
Mortgage interest rates have barely moved in several weeks, but rates are not what is weighing on consumers most. It's really uncertainty about the economy that worries people more. That is keeping some from making big financial decisions. As a result, total mortgage application volume dropped 3.8% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, decreased to 6.83% from 6.84%, with points decreasing to 0.60 from 0.62, including the origination fee, for loans with a 20% down payment. "Mortgage applications fell to their lowest level since May, with both purchase and refinance activity declining over the week," said Joel Kan, MBA's vice president and deputy chief economist. "There is still plenty of uncertainty surrounding the economy and job market, which is weighing on prospective homebuyers' decisions." Applications for a mortgage to purchase a home dropped 6% for the week and were 17% higher than the same week one year ago. Volume, however, is so low that the annual comparison is skewing deceptively high. "Applications for conventional, FHA, and VA purchase loans fell, despite slowing home-price growth and increasing levels of for-sale inventory in many regions," said Kan. CNBC's Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox. Subscribe here to get access today. Applications to refinance a home loan fell 1% for the week and were 30% higher the same week one year ago. Overall refinance volume is also historically low. That is the third straight week of declines in refinancing. Last year, mortgage rates were just one basis point lower, so essentially the same. Mortgage rates fell very slightly to start this week, but could see a bigger change in either direction following the Federal Reserve's announcement on interest rates Wednesday and Chairman Powell's commentary. The next big driver will be Friday's release of the government's monthly employment report.
CNBC
23-07-2025
- Business
- CNBC
Mortgage demand flatlines at low levels, as mortgage rates hit 4-week high
Mortgage rates rose last week to the highest level in four weeks, but mortgage demand didn't really move. Total mortgage application volume increased 0.8% last week from the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.84% from 6.82%, with points remaining unchanged at 0.62, including the origination fee, for loans with a 20% down payment. Applications to refinance a home loan, which are most sensitive to weekly rate moves, fell 3% for the week and were 22% higher than the same week one year ago, when interest rates were just 2 basis points lower. While the annual jump may seem large, that's only because the volume is so very small. Applications for a mortgage to purchase a home rose 3% for the week and were also 22% higher than the same week one year ago. "After reaching $460,000 in March 2025, the purchase loan amount has fallen to its lowest level since January 2025 to $426,700," said Joel Kan, an MBA economist. "With the 30-year fixed rate still too high to benefit many borrowers, refinance applications were down almost three percent for the week." CNBC's Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox. Subscribe here to get access today. Mortgage rates moved slightly lower to start this week, according to a separate survey from Mortgage News Daily. Markets reacted positively Tuesday morning to details from Treasury Secretary Scott Bessent's thoughts on whether or not Federal Reserve Chairman Jerome Powell would leave office early. Last week, bond yields rose on concerns he might. "In not so many words, Bessent told Trump not to fire Powell and this morning's [Tuesday's] coverage just expanded on that sentiment," wrote Matthew Graham, chief operating officer of Mortgage News Daily. "The Bessent news helped the bond market begin the day in stronger territory."
Yahoo
17-07-2025
- Business
- Yahoo
Mortgage rates move higher again
Mortgage rates increased for the second straight week. The average rate on a 30-year fixed mortgage was 6.75% through Wednesday, up from 6.68% the week prior, according to Freddie Mac data. The average 15-year fixed mortgage rate was 5.92%, up from 5.86% last week. 'The 30-year fixed-rate mortgage inched up this week and continues to stay within a narrow range under 7%. While overall affordability headwinds persist, rate stability coupled with moderately rising inventory may sway prospective buyers to act,' Sam Khater, Freddie Mac chief economist, said in a statement. Learn more: Will mortgage rates go down? Predictions after two weeks of increases. Mortgage rates continued to climb following a rise in 10-year Treasury yields last week on uncertainty about tariffs. According to data from the Mortgage Bankers' Association, the volume of mortgage applications fell by 10% compared to a week earlier, marking the sharpest decline in nearly three months and erasing the 9.4% increase from the previous week. Applications for home refinancing options also decreased. Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy 'Purchase applications remained sensitive to both the uncertain economic outlook and the volatility in rates and declined to the slowest pace since May,' said MBA Deputy Chief Economist Joel Kan. With the June jobs report from the Bureau of Labor Statistics pointing to strong employment and a lower chance of a Fed rate cut in July, mortgage rates are expected to remain within the 6% to 7% range through 2025. Read more: Where and how to find the lowest mortgage rates right now Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
Mortgage rates move higher again
Mortgage rates increased for the second straight week. The average rate on a 30-year fixed mortgage was 6.75% through Wednesday, up from 6.68% the week prior, according to Freddie Mac data. The average 15-year fixed mortgage rate was 5.92%, up from 5.86% last week. 'The 30-year fixed-rate mortgage inched up this week and continues to stay within a narrow range under 7%. While overall affordability headwinds persist, rate stability coupled with moderately rising inventory may sway prospective buyers to act,' Sam Khater, Freddie Mac chief economist, said in a statement. Learn more: Will mortgage rates go down? Predictions after two weeks of increases. Mortgage rates continued to climb following a rise in 10-year Treasury yields last week on uncertainty about tariffs. According to data from the Mortgage Bankers' Association, the volume of mortgage applications fell by 10% compared to a week earlier, marking the sharpest decline in nearly three months and erasing the 9.4% increase from the previous week. Applications for home refinancing options also decreased. Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy 'Purchase applications remained sensitive to both the uncertain economic outlook and the volatility in rates and declined to the slowest pace since May,' said MBA Deputy Chief Economist Joel Kan. With the June jobs report from the Bureau of Labor Statistics pointing to strong employment and a lower chance of a Fed rate cut in July, mortgage rates are expected to remain within the 6% to 7% range through 2025. Read more: Where and how to find the lowest mortgage rates right now Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNET
17-07-2025
- Business
- CNET
July Mortgage Rate Forecast: Buyers Retreat as Rates Rebound
Buyers should keep an eye on the possibility of rate cuts in the next few months. Tharon Green/CNET Every time the average 30-year fixed mortgage rate dips, even by a few tenths of a percentage point, prospective homebuyers jump to take advantage. As soon as rates move up again, mortgage activity goes down. The past few weeks offer a textbook example. When rates fell to around 6.7% (the lowest level in months) in early July, applications for home loans promptly ticked up, according to the Mortgage Bankers Association. But when the average 30-year fixed rate jumped to around 6.8% last week, mortgage activity plummeted 10%. "Purchase applications remained sensitive to both the uncertain economic outlook and the volatility in rates," said Joel Kan, the MBA's vice president and deputy chief economist, in a statement. The key to understanding mortgage rate movement is by looking at inflation and labor data and how that affects the bond market. Mortgage interest rates are closely tied to the 10-year Treasury. Bond market investors drive yields (rates) higher or lower based on their expectations for inflation, unemployment, Federal Reserve policy decisions and government debt. Last month's surprisingly low unemployment rate reduced the probability of an interest rate cut by the Fed this summer. "The headline labor market data isn't crashing and burning, which likely gives the Fed some cover to hold rates where they are," said Alex Thomas, senior analyst at John Burns Research and Consulting. While the Fed doesn't have direct control over the mortgage market, its monetary policy guides mortgage lenders and the general direction of interest rates. Experts say average 30-year fixed mortgage rates are likely to stay above 6.5% in the coming months, with a potential for small and temporary dips, not substantial drops. Prospective homebuyers are also contending with a long-standing housing shortage, high home prices and a loss of purchasing power. CNET What's driving mortgage interest rates this week? Mortgage rates, which are sensitive to investor speculation and economic data, have been affected by the Trump administration's tax cuts and tariff policies. If tariffs end up raising prices as expected, that would send an even clearer "wait and see" signal to central bank policymakers, whose primary task is keeping both inflation and unemployment in check. "Increased uncertainty about the inflation picture lessens the chances of a cut in rates by the Fed," said Keith Gumbinger, vice president at "Greater inflation would argue against cutting rates, absent any significant deterioration in labor conditions." Following signs of cooler inflation in 2024, the Fed cut interest rates three times but has held rates steady throughout 2025. A slowing job market with higher unemployment could still prompt the central bank to reduce borrowing costs this year, eventually helping mortgage rates fall. But the most recent jobs report appeared too steady on the surface, according to Odeta Kushi, deputy chief economist at First American Financial Corporation. "For the Fed, this reduces the urgency to cut rates in July. Even a September move may require more definitive evidence that the economy is cooling," Kushi said. Fewer interest rate cuts combined with the recently passed budget bill, which is expected to significantly boost government debt deficits, are likely to keep upward pressure on longer-term bond yields and mortgage rates. What's happening in today's housing market? Affordability challenges have kept the housing market frozen for several years. Even as the long-standing housing shortage eases in several local markets and gives those buyers improved negotiating power, the rest remain locked out by steep home prices. The 2025 homebuying season is still on hold, said Kushi. Plus, with recession risks still on the horizon, people who are nervous about finances will be more reluctant to take on mortgage loan debt. Prospective buyers waiting for mortgage rates to drop may soon have to adjust to the "higher for longer" rate environment. While market forces are out of your control, there are ways to make buying a home slightly more affordable. Last year, nearly half of all homebuyers secured a mortgage rate below 5%, according to Zillow. Here are some proven strategies that can help you save up to 1.5% on your mortgage rate. 💰 Build your credit score. Your credit score will help determine whether you qualify for a mortgage and at what interest rate. A credit score of 740 or higher will help you qualify for a lower rate. 💰 Save for a bigger down payment. A larger down payment allows you to take out a smaller mortgage and get a lower interest rate from your lender. If you can afford it, a down payment of at least 20% will also eliminate private mortgage insurance. 💰 Shop for mortgage lenders. Comparing loan offers from multiple mortgage lenders can help you negotiate a better rate. Experts recommend getting at least two to three loan estimates from different lenders. 💰 Consider mortgage points. You can get a lower mortgage rate by buying mortgage points, with each point costing 1% of the total loan amount. One mortgage point equals a 0.25% decrease in your mortgage rate. Watch this: 6 Ways to Reduce Your Mortgage Interest Rate by 1% or More 02:31
