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- Mortgage applications fall for second straight week
Mortgage applications fall for second straight week
Plus: Consumer confidence rises in July
☕ Happy Wednesday! July flew by. Today’s newsletter is 472 words, 2 minutes.
Disclaimer: Average mortgage rates as of July 30, 2024. © MND's Daily Rate Index.
1. Mortgage applications fall for second straight week
Mortgage applications decreased for the second consecutive week, driven by a significant drop in government-backed refinances, according to the Mortgage Bankers Association (MBA).
The MBA's Market Composite Index fell 3.9% for the week ending July 26, with the total number of applications nearly flat compared to the same period in 2023. The Refinance Index dropped 7.2%, while the Purchase Index fell 1.5%.
"In recent weeks, there have been some small bursts of refinance activity, particularly for FHA and VA loans. Last week, VA refi application volume dropped sharply, which drove the aggregate result"
2. Consumer confidence rises in July
Consumer confidence unexpectedly rose in July, but remained in the tight range of the past two years amid lingering worries about inflation and higher borrowing costs.
The Conference Board, a business research group, said Tuesday that its consumer confidence index rose to 100.3 in July from a downwardly revised 97.8 in June. The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months.
“Even though consumers remain relatively positive about the labor market, they still appear to be concerned about elevated prices and interest rates, and uncertainty about the future; things that may not improve until next year”
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3. More Nuggets
💸 Renasant to acquire The First Bancshares bank for $1.2 billion. (BankingDive)
🌅 The first Fed interest rate cut in years is on the horizon. Here’s what homeowners and buyers need to know. (CNBC)
🏓 Fun read: She’s a four-time olympian. Her parents want her to get a real job. (WSJ)
📈 20 most popular cities for Gen X homebuyers. (National Mortgage News)
4. Housing affordability improves in June
In June, housing affordability saw a slight improvement due to lower mortgage rates, increased housing supply, and positive income growth. However, on an annual basis, affordability declined by 4% due to a 5.6% increase in house prices and a small rise in mortgage rates.
While for-sale inventory increased by 21% compared to last year, it remains historically low, continuing to pressure affordability. Regional differences emerged, with markets like Tampa seeing improved affordability, while others like Memphis and Seattle experienced declines. (Link to report)
5. Largest housing markets for single-family new construction, according to Zonda
Based on new home closings in 2023. Source
☀️ You’re all caught up. See you on Friday!
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