Mortgage applications

U.S. 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.

Rising rates have apparently erased the optimism stemming from last month's Federal Reserve interest rate cut.

The Consumer Financial Protection Bureau and Department of Justice issued a consent order against Wisconsin-based nonbank mortgage originator Fairway Independent Mortgage over redlining allegations. Fairway is the country's fifth-largest mortgage originator by volume.

The 30-year fixed mortgage rate rose over 20 basis points last week, putting downward pressure on home loan activity.

Last week's lukewarm results come after a two-year high in application activity.

Affordability improved for a fourth straight month, but questions remain about whether recent trends will bring a significant number of buyers into the housing market.

Purchase activity trudged along during what lenders describe as a traditional end-of-summer slump.

While the lock-in effect on existing supply has helped drive consumer interest in new construction, first-time buyers have been taking a greater share of that inventory.

While still historically low, some of the changes in the first quarter appeared "troubling" and warranted extra scrutiny, according to Aces Quality Management.

Refinance activity is up 127% year-over-year as interest rates dipped closer to 6%.

Steady purchase demand still led to a positive August according to the Mortgage Bankers Association.

Purchases managed a small rise, but refinance activity held steady, according to the Mortgage Bankers Association.

Purchase applications last week fell to their lowest level since February, the Mortgage Bankers Association reported.

The FHA share of new-home loan applications also increased to a new record high, according to the Mortgage Bankers Association.

The refinance market saw a 35% jump in activity, as borrowers continued responding to downward trending rates, the Mortgage Bankers Association said.

Falling rates provided a boost for the refinance market, with activity hitting a two-year peak, according to the Mortgage Bankers Association.

Both purchase and refinance applications dropped, with borrowers potentially holding out for lower mortgage rates later this year, according to the Mortgage Bankers Association.

While the number of refinances saw a small uptick last week, purchase lending languished as housing costs keep buyers sidelined, the Mortgage Bankers Association said.

The monthly pace of growth in applications for new single-family constructions fell for the first time in 2024, according to the Mortgage Bankers Association.

Refinance transactions shot up over 15% to their highest volume in almost two years, the Mortgage Bankers Association said.