Mortgage rates unchanged after inflation report

👋 Good morning and happy Wednesday. Today's newsletter is 563 words, 3 minutes.

1. Mortgage rates unchanged after inflation report

The consumer price index, a closely watched inflation gauge, increased 0.1% in November, and was up 3.1% from a year ago. These figures aligned precisely with the 3.1% annual rate anticipated by economists surveyed by Dow Jones.

Subsequent to this data release, mortgage rates experienced minimal change. The 30-year fixed rate slightly decreased by 0.01% to 7.09%, while the 15-year fixed rate remained steady at 6.50%.

The stability of mortgage rates, despite the CPI indicating a modest reduction in inflation, is primarily due to the CPI's alignment with market forecasts. As a result, the CPI report did not trigger a significant market response.

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Coming up: We'll get another chance to see some volatility after today’s afternoon Fed announcement (2 pm ET), where the Federal Reserve is expected to hold rates steady for a third consecutive meeting, with an expectation that it will push back against the ramped-up bets on rate cuts.

2. Mortgage credit tightens for first time in four months

Mortgage credit availability decreased in November according to the Mortgage Credit Availability Index (MCAI), a report from the MBA that analyzes data from ICE.

The MCAI fell by 1.7 percent to 96.5 in November. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.

• The Conventional MCAI decreased 3.6 percent, while the Government MCAI remained unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 5.4 percent, and the Conforming MCAI remained unchanged.

“Credit availability in November declined to its lowest level in four months, driven by reduced offerings of non-QM and jumbo loan programs,” said Joel Kan, MBA’s Vice President

3. Catch up quick

📰 More tenants than ever spend half or more of their income on shelter. (NY Times)

💳 Wells Fargo, other mortgage lenders under scrutiny for pricing exceptions. (CNBC)

💼 45% of real estate agents say they're struggling to pay office rent. (Yahoo/Reddit)

4. Former employee sues UWM for discrimination

A former United Wholesale Mortgage employee is suing the Pontiac-based company for racial discrimination.

In a lawsuit filed Friday in the Eastern District of Michigan, Corey Tucker says he "was assaulted both physically and verbally by his Caucasian co-workers while at the workplace."

UWM said it does not comment on pending litigation. Tucker is seeking an award of lost wages and fringe benefits, both past and future, along with compensatory and exemplary damages.

POLL OF THE WEEK

5. Mortgage refinance demand jumps 19%

Homeowners looking to refinance are finding savings after mortgage rates dropped again last week. The average contract interest rate for 30-year fixed-rate decreased to 7.07% from 7.17%, according to the MBA. That was the lowest level since July.

As a result, applications to refinance a home loan increased 19% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Refinance demand was 27% higher than the same week one year ago.

“Borrowers who had seen rates near 8% earlier this fall are now seeing some lenders quote rates below 7%. Refinance volume picked up in response to this drop in rates, with a particularly notable increase for FHA and VA refinance applications,” Mike Fratantoni, MBA’s senior vice president.

👋 See you on Friday!

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