While rising mortgage rates are top of mind for the industry after last week's increase in the federal funds rate, the housing market should be more concerned about limited home inventory, according to First American Financial Corp.
Mortgage rates fell for the first time in four weeks, dropping 10 basis points as investors' concerns over a government crisis in Italy drove bond yields lower.
Mortgage applications decreased 2.9%, falling for the eighth consecutive week even as interest rates came down from their recent highs, according to the Mortgage Bankers Association.
Mortgage rates have reversed course and reached a new high last seen seven years ago as the yield on the 10-year Treasury crossed the 3% threshold this week, according to Freddie Mac.
Mortgage rates were unchanged over the past week, but appear to be headed higher with a robust summer home sales season expected, according to Freddie Mac.
Fannie Mae increased its second-quarter mortgage origination projection by $7 billion as refinance volume is remaining stronger than previously expected.
Mortgage rates posted a slight increase this week following the Federal Open Markets Committee's decision to boost short-term rates by 25 basis points, according to Freddie Mac.
While regulatory relief legislation would raise the asset threshold for “systemically important” banks, Federal Reserve Chairman Jerome Powell said the central bank could still apply prudential scrutiny to banks below that new cutoff.
