Update on the Mortgage Market week of 4-3-23
Relative Calm in Markets
After several weeks of extreme volatility in mortgage markets due to concerns about the banking sector, perhaps the most noticeable change this week was the relative calm. While investors remained alert for troubles spreading to additional banks, tensions have eased, and the daily swings in mortgage rates have returned to more normal levels. Just as the increased uncertainty earlier in the month caused investors to shift from equities to safer assets such as mortgage-backed securities, reduced concerns had the opposite effect, and mortgage rates ended last week higher.
Mortgage Applications Modest Uptick
Mortgage activity, which was recently at the lowest levels in 25 years, has picked up a bit lately. According to the latest data from the Mortgage Bankers Association (MBA), purchase applications rose modestly from last week, yet are still down 35% from last year at this time. Applications to refinance increased 5% from the prior week but remain down a massive 61% from one year ago.
Source: Mark Cohen, Cohen Financial