Mortgage rates

A rise in coronavirus cases and the removal of a 50-basis-point adverse market fee designed to protect Fannie Mae and Freddie Mac during the pandemic contributed to the largest weekly drop so far this year.

Despite lower numbers, refi applications continued trending strongly, while purchases fell close to lows from more than a year ago.

The adverse market fee change could contribute to an increase in refinance volume, adds Mortgage Bankers Association economist Mike Fratantoni.

The GSE forecasts $4 trillion in production this year because refinance activity is stronger than expected.

Purchase loans also increase, as their average size shrinks

Boosts in purchases and cash-out refinances drove the summer turnaround, according to Black Knight.

Still, the average time a property is on the market is at an all-time low, with more than half going into contract within two weeks.

With talk of an overheating economy abating, economists see few signals that would indicate near-term rate spikes.

But some local markets in the Midwest and oil regions are seeing a lag compared to nationwide annual gains, Veros Real Estate Solutions found.

The dynamic between housing market players diverged to an even greater degree amid intense demand and surging home prices, according to Fannie Mae.

Government-sponsored loans gain volume share, but overall numbers tumble to a point not seen since before the pandemic.

Markets react calmly to inflationary worries, but short supply and rising home prices loom as a greater concern.

Limited housing supply, climbing rates cause applications to decline across the board.

While purchasing power grew for the 16th straight month in April, surging property values and increased mortgage rate forecasts will keep driving down affordability, according to First American.

Median home prices are higher than the historical average in 61% of U.S. counties, Attom Data Solutions said, and it's unclear if the situation gets better or worse.

Corresponding Treasury yields seesawed over the past week, as some experts see “transitory” inflation persisting.

Increases in refinances, both in applications and average size, help lead overall numbers higher

While purchasing power rose due to low rates and increasing income, “homebodies” suppressed inventory, according to First American.

Signs from the Fed regarding tapering and interest rate hikes could spell the end to the year’s low rates.

A spike in government-sponsored applications helped lead indexes to their largest gains in several weeks.