Editor’s Note: The Mortgage Mix is RISMedia’s weekly highlight reel of need-to-know mortgage-industry happenings. Watch for it each Friday afternoon.
- The Federal Reserve made the critical announcement that they are pausing interest rate hikes at their meeting Wednesday afternoon. “We have been seeing the effects of our policy tightening on demand in the most interest rate sensitive sectors in the economy, especially housing and investment. It will take time, however, for the full effects of monetary restraint to be realized, especially on inflation,” said Fed Chair Jerome Powell.
- Mortgage rates saw a slight decrease this week, the second week in a row of a drop in rates, according to the latest Freddie Mac data. The 30-year fixed rate decreased from 6.71% to 6.69%, meanwhile the 15-year fixed rate increased slightly from 6.07% to 6.1%. “Though slowing inflation signifies better economic conditions ahead, borrowing, including for a home purchase, is likely to remain expensive for the remainder of the year,” said Realtor.com’s Economic Data Analyst Hannah Jones.
- Coinciding with a drop in rates, mortgage applications increased 7.2% this week, according to the latest Mortgage Applications Survey from MBA. “Rates that are still more than a percentage point higher than a year ago, and low for-sale inventory continue to constrain homebuying activity in many markets,” said Joel Kan, MBA’s vice president and deputy chief economist.
Foreclosure filings grew 7% from April to May, up 14% year-over-year, according to ATTOM’s latest U.S. Foreclosure Market Report. In May, a total of 35,196 properties had foreclosure filings. “This upward trajectory suggests the possibility of continued heightened activity,” said Rob Barber, CEO at ATTOM.
