Mortgage Applications Increase on Purchase Activity
47 minutes ago
Applications for mortgages increased by 3.7% for the week ending on Feb. 2 despite mortgage rates holding steady so far in 2024, according to Mortgage Bankers Association data released Wednesday.
“Purchase activity has been strong to start 2024 compared to the final quarter of 2023,” said Joel Kan, MBA vice president. “However, activity is still weaker than a year ago because of low housing supply.”
Rates for the 30-year fixed mortgage were at 6.8%, slightly higher than last week, but near where they were at the start of the year. Mortgage rates have remained steady despite swings in influential Treasury yields.
On an unadjusted basis, all applications increased by 8% compared to the previous week and were 41% higher than four weeks ago. Purchase applications were higher by 6% from the previous week, but were 19% lower than the same week one year ago. The average loan size for mortgages for home purchases was $434,800.
Refinancing activity increased by 12% from the previous week and was less than 1% higher than last year.
-Terry Lane
Philadelphia Fed’s Harker Says Economy on Path for Soft Landing
1 hr 17 min ago
The U.S. economy is on the path to a soft landing, Philadelphia Federal Reserve President Patrick Harker told a college audience Wednesday night.
“Now certainly we haven’t touched down, and we’re going to have to keep our seatbelts on, but with inflation continuing to fall back to our 2% target, with employment remaining strong, and with consumer sentiment looking up, the runway at our destination is in sight,” Harker said in a speech to Rowan University.
Harker is among a string of Fed speakers this week who are addressing monetary policy following last week’s decision by the Federal Open Market Committee (FOMC) to keep the fed funds rate at 5.25%-5.5%. Harker isn’t a voting member of the FOMC this year.
In his remarks, Harker described his transition from two years ago when he was a “hawk” who wanted to quickly raise interest rates high, to a “dove” who was one of the first members of the FOMC to argue for holding rates steady.
-Terry Lane
