Mortgage rates

The yield on 10-year benchmark Treasuries was up about three basis points following Wednesday's sale, after earlier climbing more than five basis points. 

The Mortgage Bankers Association's measure of refinancing dropped 7.1% to 634.1 in the week ended May 23.

Purchases of new single-family homes increased 11% last month to a 743,000 annual rate, the highest level since February 2022, according to government data.

The 14.3% rate for deals withdrawn in any April is the highest level other than in Covid-impacted 2020, as homebuyers reexamine the market, Redfin said.

Yields on the 10-year Treasury have been climbing because of the Moody's U.S. downgrade, the tax bill under debate in Congress and possible GSE reform.

The unexpected drop to the slowest pace in seven months was driven by ongoing affordability constraints and is a lackluster start to the Spring selling season.

Increases in gross domestic product and home sales expectations compared with April are the drivers of Fannie Mae's latest mortgage outlook for 2025 and 2026.

The Mortgage Bankers Association latest forecast reflects the industry's current views on where their business is going, said Mike Fratantoni.

Investors face yet another bumpy start to the trading week, although it's mounting concern over US debt rather than tariffs likely generating the volatility this time.

The 30-year FRM remained under 7% for the 17th consecutive week, Freddie Mac said, but the 10-year Treasury at one point was up over 25 basis points.