Mortgage rates

However, the benchmark 10-year Treasury yield pushed back up 15 basis points from a week ago as the markets settle following the recent bank failures.

The year-over-year drop in January stemmed primarily from loans where a payment had not been made in at least 120 days but shorter-term arrears were higher during the same period.

The National Association of Realtors' index of contract signings to purchase previously owned homes increased 0.8% last month to 83.2.

Home prices nationally fell 0.2% from December, according to seasonally adjusted data from S&P CoreLogic Case-Shiller.

The primary cause is agency put-backs and fixing the problems is difficult in a rising rate environment.

The economic situation is more like what happened during the mid-'80s thrift crisis than the 2008 downturn, said Chief Economist Doug Duncan.

Bond market investors continue to drive down the benchmark 10-year Treasury yield, even after short-term rates were boosted 25 basis points on Wednesday.

More hikes are likely as the Board is confident its bid to quell inflation won't deepen a nascent banking crisis.

Both 30- and 15-year averages dropped for the first time in six weeks, as investors flocked to safety of 10-year Treasuries.

Home sellers are offering to pay for closing costs, mortgage rate buydowns and property repairs in order to attract buyers, Redfin found.

Product availability fell to its lowest level since January 2013 as lenders pulled back on offerings across the board, but especially in conforming loans, the Mortgage Bankers Association said.

The shift in short-term interest rate markets Monday was unlike almost anything seen for more than four decades, including even the 2008 financial crisis and the aftermath of the Sept. 11 terror attacks. 

Rates on the 30-year fixed rate mortgage rose during the month, but purchase borrowers using jumbo loans drove activity higher compared with January, Black Knight said.

The 30-year fixed pushed up another 8 basis points this week as the markets are speculating about what the Federal Reserve will do next.

The Federal Reserve chairman took an unexpectedly aggressive posture following last month's step down in the pace of hikes in testimony before Congress on Tuesday,

"The committee is strongly committed to returning inflation to its 2% objective," the Fed said in its semi-annual report to Congress released Friday.

The increase reflects the rise in the 10-year Treasury yield, which is back above 4% for the first time since that month.

But even if plowing back into Treasuries proves to be a winning trade, sticking with it won't be for the faint of heart. 

Buyer affordability has decreased by almost 22% in the past year, according to the Mortgage Bankers Association.

Persistent inflation concerns drove the 30-year average up 41 basis points this month.