In response to lower rates, mortgage applications rebounded for the week ending May 3, the Mortgage Bankers Association reported.
“Treasury rates and mortgage rates fell last week on the news of a slowing job market, with wage growth at the slowest pace since 2021, and the Federal Reserve’s announced plans to ease quantitative tightening in June and to maintain its view that another rate hike is unlikely,” said MBA chief economist Mike Fratantoni. “The conventional 30-year rate dropped 11 basis points, and the FHA rate fell 17 basis points to 6.92%, back below 7% for the first time in three weeks.
“Mortgage applications increased for the first time in three weeks, with refinances up 5%.”
However, Fratantoni noted that refinance volume remains about 6% below last year’s already depressed levels despite the increase.
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