Mortgage Trends Alert

Mortgage Trends Alert

Greetings, Portland and Vancouver community! It's Peter Cutile, your dedicated local real estate expert. Today, I'm bringing you fresh insights straight from Washington, D.C., with the latest on mortgage applications—a crucial piece of information for anyone, especially millennials and professionals, contemplating their next big move.

According to a recent report from the Mortgage Bankers Association (MBA), mortgage applications have seen a decline of 4.2% as of the week ending August 18, 2023. Diving deeper:

  • The Market Composite Index, reflecting mortgage loan application volumes, has diminished by 4.2% on a seasonally adjusted basis. Without adjustments, we're looking at a 6% drop compared to the previous week.
  • The Refinance Index has also descended by 3%, a stark 35% drop compared to the same time frame last year.
  • The Purchase Index fell 5% from the preceding week and a notable 30% from the same week a year ago.

Joel Kan, the MBA's Vice President and Deputy Chief Economist, highlighted the upward trend of Treasury yields amidst market illiquidity concerns and a stubbornly high inflation rate. Consequently, the 30-year fixed rate has ascended to 7.31%, a rate not seen since December 2000. Kan points out that the high rate environment and ongoing affordability issues due to low housing supply have impacted buyer behavior.

However, not all is grim! The ARM (adjustable-rate mortgage) applications have seen a spike, with a 4% increase in the past week, indicating some buyers are exploring alternative financing strategies.

For those of you keen on statistics:

  • Refinance share increased to 29.5%.
  • ARM share rose to 7.6%.
  • FHA-backed loans made up 14.3% of total applications.
  • VA loans comprised 11.6%, and USDA loans 0.5%.

And if you're looking at interest rates:

  • 30-year fixed-rate mortgages with conforming loan balances now stand at 7.31%.
  • Jumbo loan balances for the same period have reached 7.27%.
  • 30-year fixed-rate FHA-backed mortgages are at 7.09%.
  • 15-year fixed-rate mortgages stand at 6.72%.
  • Lastly, the 5/1 ARMs have increased to 6.50%.

Why This Matters For You:
If these numbers seem overwhelming, you're not alone. But here's where I come in. As a top 1% agent in Portland/Vancouver and top 3% nationally, I'm dedicated to helping you navigate these waters, ensuring you make the best decisions for your future.

Connect With Peter For Guidance:
Whether you're a first-time homebuyer, looking to list your property, or relocating to our beautiful areas, I'm here for you. Let's demystify the mortgage landscape together. Reach out to me, Peter Cutile, today!

Work With Peter

Navigating the sale or purchase of a home can be one of the biggest and most worrisome seasons of life. Peter's goal is that, by answering questions, providing education on the process, and being available, he will be able to help make that season a sweet and wonderful journey.

Follow Me on Instagram