Mortgage Bankers Association

Both purchases and refinance volumes climbed higher, as interest rates flattened following earlier volatility, according to the Mortgage Bankers Association.

In a seven-day period that saw several marks — including conforming interest rates — surge or dip past longtime highs and lows, overall mortgage activity cooled for a fifth consecutive week, according to the Mortgage Bankers Association.

While a majority of current forborne borrowers sought relief for reasons related to COVID-19, servicers are seeing a growing share of cases involving natural disasters or personal financial issues, the Mortgage Bankers Association said.

But a surge of the 30-year conforming rate to a high last seen in 2001 helped drive overall borrowing lower, even as buyer interest in government-backed products grew, the Mortgage Bankers Association said.

The news helped drive 30-year mortgage averages above 7% last week, according to the Mortgage Bankers Association.

Volumes were driven down largely by slowing conventional purchase activity resulting from ongoing interest rate and affordability challenges, the Mortgage Bankers Association said.

While the monthly amount decreased by only a few dollars in June, it was the first decline since late last year, according to the Mortgage Bankers Association.

The decline occurred even as interest rates held steady, but average loan amounts shot up due to a heightened slowdown of federally sponsored activity, the Mortgage Bankers Association said.

Declining rates contributed to a surge in refinances, but a sluggish market is capping purchase activity, according to the Mortgage Bankers Association.

A decline in refinances was offset by a rise in purchase loans, largely among government-guaranteed programs, according to the Mortgage Bankers Association.

The Mortgage Bankers Association attributes this to muted demand for home purchases and companies trimming their operations.

Purchase volumes reached their highest level since early May, but current numbers sit 30% lower than where they were a year ago, the Mortgage Bankers Association said.

Both loan volumes and interest rates came in mostly flat, but the jumbo average ran ahead of the conforming for the second week in a row, the Mortgage Bankers Association said.

The uptick occurred as conforming rates pulled back for the second week in a row, coming in below the jumbo average according to the Mortgage Bankers Association.

After falling to a 10-year low in April, credit on the market diminished further last month, with government, conforming and jumbo offerings all decreasing, according to the Mortgage Bankers Association.

Government-backed activity, though, managed to grow, which helped to shrink purchase-loan sizes to their smallest in over two months, the Mortgage Bankers Association said.

The 30-year average for both conforming and jumbo loans jumped more than 20 basis points, according to the Mortgage Bankers Association.

The 30-year conforming average reached its highest point since March last week, while loan application volumes finished 35% below their levels from a year ago, a trade group said.

The investor segment will have to be mindful as it gains ground, executives said Tuesday, noting that the sector takes experience, skill and savvy awareness of risks.

The Mortgage Bankers Association sees the likelihood of a rise in sales activity later this year based on recent construction trends, in a turnaround from the 2022 market.