Mortgage rates

The recent increase in loan size across all application types reflects rising prices, which contributed to a drop in applications, Mortgage Bankers Association economist Joel Kan said.

Hedge accounting will align Fannie’s reporting with competitor Freddie Mac, and will address a mismatch between the recorded value of financial instruments used to offset interest-rate volatility on mortgages and the loans themselves.

Depressed Treasury yields have kept mortgage rates under 3% recently, but positive economic news could indicate larger increases will follow this week’s uptick.

After a one-week reprieve, mortgage activity waned again with decreased demand for refinances and extremely low inventory for homebuyers.

Despite home purchasing power growing for the 14th consecutive month in February, rising property values and mortgage rates are likely to influence would-be sellers to stay put, according to First American.

Inflation, an improving economy and the increased federal budget deficit make rate increase inevitable this year, the Mortgage Bankers Association said.

While it’s the third straight week of a downward trend, borrowers likely have only a brief opportunity to take advantage of sub-3% rates before a reversal comes.

While purchase volume is seeing its usual seasonal pickup, lower rates caused a spike in activity among existing homeowners looking to refinance.

The government sponsored enterprise’s latest forecast calls for a nearly $4 trillion year for 2021.

Rising cases and vaccine issues caused bond yields to fall, but inflationary pressures will likely reverse that course.

The shift ended a long run of higher rates that have depressed loan application activity, and it temporarily creates a new refinancing incentive for some borrowers.

Vaccinations and a third round of stimulus payments are boosting consumers views on the housing market, according to Fannie Mae.

Mortgage rates that are rising in tandem with a recovering economy dampened borrower activity, even with prime homebuying season underway.

The increase won’t hurt the incentive for the average home shopper, but it means those who were looking to “buy the dip” in prices amid the pandemic may have missed their chance.

After two straight months on an upward trajectory, rising interest rates pushed homebuyer demand down to a third of where it stood at the start of 2021, according to Freddie Mac.

While there were fewer new mortgages sought on a week-to-week basis, the index was higher than it has been during the same week in the last two years.

But the 10-year Treasury yield began backing down after the weekend as investors reacted to turmoil in Europe.

From offering operations folks big bonuses to grooming recent grads, lenders are getting creative in their efforts to manage staffing throughout the boom-bust cycle.

Household formations, looser credit and an improved economy will overcome higher rates — and even the inventory shortage.

However, the increase has been more gradual than that seen in Treasury yields, and loan activity has only subsided slightly to date.