Mortgage rates

The average was up from 2.77% last week and the highest since July 15, Freddie Mac said Thursday.

An equal split of refinance and purchase rate locks occurred during July, helped by elimination of the adverse market fee, Black Knight said.

Tight inventory and heightened competition kept prime purchasers at bay as property values continued their summer surge, according to Fannie Mae.

The delta variant added uncertainty to markets, leaving investors cautious about moves that would lead to upward movement.

Many banks reported sharp declines in income from home loans during the second quarter. The large gains they enjoyed last year thanks to a surge in refinancing activity are unlikely to return, according to bankers and analysts.

Despite declining rates, refinancing volume fell, while purchases slowed even further after dipping to its lowest point in over a year.

A change in the relationship between fixed and adjustable loans has increased some consumers’ interest in the latter market.

Such applications have declined on an annual basis for the past three months, but overall weekly numbers increased due to a jump in refinances amid plummeting rates.

Officials have pledged to maintain bond buying until the economy shows "substantial further progress" on inflation and employment as it recovers from COVID-19.

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.