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    On Thursday, July 11, 2024, Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.89 percent, down from last week when it averaged 6.95 percent. A year ago at this time, the 30-year FRM averaged 6.96 percent.

    The 15-year fixed-rate mortgage averaged 6.17 percent, down from last week when it averaged 6.25 percent. A year ago at this time, the 15-year FRM averaged 6.3 percent.

    “Following June’s jobs report, which showed a cooling labor market, the 10-year Treasury yield decreased this week and mortgage rates followed suit,” said Sam Khater, Freddie Mac’s Chief Economist. “We’re also seeing more inventory on the market, including a fair number of listings with price cuts, which is an encouraging sign for prospective buyers.”

    According to the Mortgage Bankers Association (MBA), mortgage applications decreased 0.2 percent from one week earlier. The Refinance Index decreased 2 percent from the previous week and was 28 percent higher than the same week one year ago. The unadjusted Purchase Index decreased 19 percent compared with the previous week and was 13 percent lower than the same week one year ago. Last week’s results included an adjustment for the July 4th holiday.

    “The recent uptick in mortgage rates has slowed demand. Mortgage applications were essentially flat last week, as mortgage rates remained around 7 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Purchase activity picked up slightly, driven primarily by increases in FHA and VA applications. Refinance applications decreased for the fourth consecutive week, in line with higher rates. Although home equity gains have been significant in recent years, most borrowers do not have much of an incentive to refinance at current rates.”   

    More housing and market news

    In response to the U.S. Bureau of Labor Statistics report on employment conditions in June,MBA SVP and Chief Economist Mike Fratantoni said, “Similar to May, the headline gain in nonfarm payroll employment data in June does not tell the entire story. While the headline gain showed an increase of 206,000 jobs, more than one-third of that was a gain in government employment, largely a function of increases in state and local jobs. Although June’s increase was above our expectations, both April and May figures were revised down by a combined 111,000 jobs, marking the three-month average down to a 177,000 increase.”

    He added, “Beyond this headline, other aspects of the data indicate a slowing job market. The unemployment rate ticked up to 4.1%. Wage gains slowed again to 3.9% on a 12-month basis, and temporary hires actually decreased by 49,000, a sign that business demand for labor is decreasing.

    “Historically speaking, this is still a tight job market. However, relative to more recent data, the job market is weakening. Inflation data showing more reductions for the next couple of months will be the most important evidence that the Federal Reserve needs to cut rates in September. The current job market data points in that direction once you read below the headline.”

    According to MBA’s Mortgage Credit Availability Index (MCAI), mortgage credit availability rose by 1 percent in June. “Mortgage credit availability increased in June for the sixth consecutive month, as lenders expanded their offerings of cash-out refinance loan programs,” said MBA’s Kan. “The recent growth in credit availability is encouraging, but the index is still hovering near 2012 lows. The Jumbo index increased to its highest level since August 2022, but the conforming and government indices continue to indicate tight credit conditions, driven mainly by reduced industry capacity.”  

    Additional mortgage activity

    • The refinance share of mortgage activity decreased to 34.9 percent of total applications from 35.7 percent the previous week.
    • The adjustable-rate mortgage (ARM) share of activity increased to 6.2 percent of total applications.
    • The FHA share of total applications decreased to 12.5 percent from 13.1 percent the week prior.
    • The VA share of total applications increased to 13.7 percent from 12.9 percent the week prior.
    • The USDA share of total applications increased to 0.4 percent from 0.3 percent the week prior.

    This week in mortgage rates

    Rates decrease. Here’s how average fixed rates broke down:

    • 30-year fixed-rate loans: 6.89% (down from 6.95%)
    • 15-year fixed-rate loans: 6.17% (down from 6.25%)

    Check back next week for the most up-to-date mortgage and housing news.


    July 5 – Mortgage Rates Increase and Applications Decrease

    On Friday, July 5, 2024, Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.95 percent, up from last week when it averaged 6.86 percent. A year ago at this time, the 30-year FRM averaged 6.81 percent. This week’s results include an adjustment for the observance of Independence Day.

    The 15-year fixed-rate mortgage averaged 6.25 percent, up from last week when it averaged 6.16 percent. A year ago at this time, the 15-year FRM averaged 6.24 percent.

    “Mortgage rates increased this week, coming in just under seven percent,” said Sam Khater, Freddie Mac’s Chief Economist. “Both new home and pending home sales are down, causing active listings to rise. We are still expecting rates to moderately decrease in the second half of the year and given additional inventory, price growth should temper, boding well for interested homebuyers.”

    According to the Mortgage Bankers Association (MBA), mortgage applications decreased 2.6 percent from one week earlier. The Refinance Index decrease 2 percent from the previous week and was 29 percent higher than the same week one year ago. The unadjusted Purchase Index increased 7 percent compared with the previous week and was 12 percent lower than the same week one year ago.

    “Mortgage rates moved higher last week, crossing the 7 percent mark, even as the latest inflation data has kept market expectations alive for a rate cut from the Fed later this year,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Purchase applications decreased the final full week of June, even as both new and existing inventories have increased over the past few months. Refinance activity also remains subdued — although there was a slight increase in applications for Conventional refinance loans.”

    More housing and market news

    In response to President Biden’s mention of capping rents during the debate, the Housing Solutions Coalition put out the following statement: “Decades of academic research from across the United States and around the world clearly show that rent caps — more commonly known as rent control — reduce the supply of available housing and fail to target those renters who need help the most while simultaneously harming other residents and the communities they reside in. Despite President Biden’s mention of rent caps during the debate, he and his policy experts know that the real reason so many Americans struggle with housing costs is because we need to build more housing. There is no debate. Rent caps hurt renters and communities.” 

    Additional mortgage activity

    • The refinance share of mortgage activity increased to 35.7 percent of total applications from 35.1 percent the previous week.
    • The adjustable-rate mortgage (ARM) share of activity decreased to 6 percent of total applications.
    • The FHA share of total applications remained unchanged at 13.1 percent.
    • The VA share of total applications decreased to 12.9 percent from 13.8 percent the week prior.
    • The USDA share of total applications decreased to 0.3 percent 0.4 percent the week prior.

    This week in mortgage rates

    Rates increase. Here’s how average fixed rates broke down:

    • 30-year fixed-rate loans: 6.95% (up from 6.86%)
    • 15-year fixed-rate loans: 6.25% (up from 6.16%)

    Check back next week for the most up-to-date mortgage and housing news.


    June 27 – The 30-Year Fixed-Rate Mortgage Down Slightly, Applications Increase

    On Thursday, June 27, 2024, Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.86 percent, down from last week when it averaged 6.87 percent. A year ago at this time, the 30-year FRM averaged 6.71 percent.

    The 15-year fixed-rate mortgage averaged 6.16 percent, up from last week when it averaged 6.13 percent. A year ago at this time, the 15-year FRM averaged 6.06 percent.

    “The 30-year fixed-rate mortgage continues to trend down, hitting the lowest level in almost three months,” said Sam Khater, Freddie Mac’s Chief Economist. “By historical standards, the economy is in good shape, and we expect rates to continue to come down over the summer months, bringing additional homebuyers back into the market.”

    According to the Mortgage Bankers Association (MBA), mortgage applications increased 0.8 percent from one week earlier. The Refinance Index was essentially unchanged from the previous week and was 26 percent higher than the same week one year ago. The unadjusted Purchase Index decreased 10 percent compared with the previous week and was 13 percent lower than the same week one year ago. This week’s results include an adjustment for the Juneteenth holiday.

    “Mortgage rates were mostly lower last week, with the 30-year fixed rate declining slightly to 6.93 percent, the lowest level in more than three months,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Lower rates, however, were still not enough to entice refinance borrowers back, as most continue to hold mortgages with considerably lower rates.”

    Added Kan, “Purchase applications did see a small increase after adjusting for the Juneteenth holiday. Government purchase loans, primarily FHA and VA, saw gains of more than 2 percent over the previous week, as homebuyers in those segments sought to take advantage of the recent rate relief.”

    More housing and market news

    According to the MBA, the total number of loans now in forbearance declined slightly to 0.21% in May. “The performance of servicing portfolios in May was solid, with about 96 percent of borrowers making their mortgage payments on time,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “There was a slight decline in the performance of post-forbearance loan workouts, but the results were relatively strong with 75 percent of homeowners making their payments in accordance with the workout terms.”

    According to MBA’s Purchase Applications Payment Index (PAPI), homebuyer affordability improved in May, with the national median payment applied for by purchase applicants decreasing to $2,219 from $2,256 in April. 

    “Homebuyer affordability conditions improved in May as slightly lower mortgage rates and an uptick in housing inventory slightly eased the recent rise in application payment amounts,” said Edward Seiler, MBA’s Associate Vice President, Housing Economics, and Executive Director, Research Institute for Housing America. “MBA is forecasting for mortgage rates to fall closer to 6.5 percent by the end of the year, which along with rising inventory levels and a subsequent slowdown in home-price growth, should help affordability.”

    Additional mortgage activity

    • The refinance share of mortgage activity decreased to 35.1 percent of total applications from 35.2 percent the previous week.
    • The adjustable-rate mortgage (ARM) share of activity increased to 6.1 percent of total applications.
    • The FHA share of total applications increased to 13.1 percent from 12.7 percent the week prior.
    • The VA share of total applications decreased to 13.8 percent from 14.8 percent the week prior.
    • The USDA share of total applications remained unchanged at 0.4 percent.

    This week in mortgage rates

    Rates up and down. Here’s how average fixed rates broke down:

    • 30-year fixed-rate loans: 6.86% (down from 6.87%)
    • 15-year fixed-rate loans: 6.16% (up from 6.13%)

    Check back next week for the most up-to-date mortgage and housing news.


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