The US mortgage rate fell for the second time in eleven weeks

In the week ending May 19, mortgage rates fell for the second time in eleven weeks.

The 30-year fixed rate fell five basis points to 5.25%. The 30-year fixed rate rose 3 basis points in the previous week.

Each year, the 30-year fixed rate increases by 225 basis points.

The 30-year fixed rate has risen 31 basis points from the November 2018 high of 4.94%.

Economic data from the week

It was a busy first half of the week. The NY Empire State was focused on manufacturing, retail and industrial production.

The figures were mixed, with the NY Empire State Manufacturing Index sliding from 24.6 to -11.6.

The April industrial production figures were promising, easing market volatility over the economic outlook. Production rose 1.1% in April.

Retail sales have created some uncertainty, however. Retail sales rose 0.9% in April after rising 1.4% in March.

On the monetary policy front, Fed Chair Powell caused a stir on Tuesday, speaking out against the desire to move beyond neutrality to curb inflation. However, the hawk’s chatter was not enough to offset the puzzle effect of investors towards the economic outlook on mortgage rates.

From China, industrial production and retail sales figures on Monday set bearish tones, disappointing.

Freddie MacRate

Weekly average rates for new mortgages up to May 19, 2022 are quoted Freddie Mac To be:

According to Freddie Mac,

  • Mortgage volatility has increased due to economic uncertainty, which has also affected purchasing demand.

  • The attitude of homeowners has reached its lowest point in almost two years.

  • Rising costs are affecting builders, which can further affect builder sentiment.

Rate of Mortgage Bankers Association

For the week ending May 13, 2022 Rate Was:

  • The 30-year average interest rate has been reduced from 5.53% to 5.49% with a fixed loan balance. Points for 80% LTV loans increased from 0.73 to 0.74 (including origin fee).

  • The average 30-year fixed mortgage rate supported by FHA has decreased from 5.37% to 5.32% Points for 80% LTV loans have dropped from 0.87 to 0.71 (including origin fee).

  • The 30-year average rate for jumbo loan balances ranged from 5.08% to 5.03%. Points for 80% LTV loans increased from 0.42 to 0.61 (including origin fee).

Weekly figures published by the Mortgage Bankers Association show that the market composite index, a measure of the amount of mortgage loan application, has declined by 11%. The index rose 2.0% in the previous week.

The refinancing index is down 10% and was 76% lower than the same week a year ago. In the previous week, the index fell 2%.

Mortgage refinancing shares have risen from 32.4% to 33.0%. The previous week, the stock had fallen from 33.9% to 32.4%.

According to the MBA,

  • For the first time in three weeks, mortgage applications have declined due to rising mortgage rates.

  • Current mortgage rates provide little incentive for borrowers to refinance.

  • Purchasing applications fell 12% last week, with higher rates and increasing environmental weight of purchasing power.

  • Uncertainty about the economic outlook and stock market volatility has also affected buyer demand.

For the week ahead

The first half of the week ahead is relatively busy.

On Tuesday, the US private sector PMIs for May will attract a lot of attention. We expect a lot of market sensitivity for PMI services as the markets assess the economic situation in the middle of the second quarter.

On Wednesday, orders for key sustainable products will also be affected.

This article was originally posted on FX Empire

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