Mortgage rates reverse their upward trend to narrow down to 5.70%

Jun. 30, 2022 10:14 AM ETREM, REZ, HOMZ, XHB, NVR, BLD, PHM, TOL, LEN, DHIBy: Khyathi Dalal, SA News Editor2 Comments

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  • 30-year fixed-rate mortgage averaged 5.70% with an average 0.9 point for the week ending Jun. 30, down from last week when it averaged 5.81% and higher than 2.98% a year ago, according to the Freddie Mac Primary Mortgage Survey.
  • The drop was led by countervailing forces of high inflation and the increasing possibility of an economic recession.
  • 15-year fixed-rate mortgage averaged 4.83% with an average 0.9 point, down from last week when it averaged 4.92% and higher from 2.26% a year ago.
  • 5-year Treasury indexed hybrid adjustable-rate mortgage averaged 4.50% with an average 0.3 point, up from last week when it averaged 4.41% and higher than 2.54% a year ago.
  • "This pause in rate activity should help the housing market rebalance from the breakneck growth of a seller’s market to a more normal pace of home price appreciation," Chief Economist Sam Khater commented.
  • Black Knight's Optimal Blue OBMMI pricing engine, which includes some refinancing data — but excludes cash-out refis to avoid skewing averages – measured the 30-year conforming rate at 5.89% Wednesday, down slightly from last week’s 5.9%.
  • The rates move in-line with the 10-year U.S. Treasury yield which reached 3.10% down from 3.16% a week before.
  • Mortgage Bankers Association expects loan origination volume to drop about 40% to ~$2.4T this year, from last year’s $4T; MBA expects 6.53M existing and new home sales in 2022, compared to 6.9M in 2021.
  • Homebuilding stocks trading in the red in early trading hours: (DHI), (LEN), (TOL), (PHM), (BLD), (NVR)
  • ETFs Watch: (XHB), (HOMZ), (REZ), (REM)

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