This was the worst week for mortgage rates in 3 years – and it may be just the beginning

The good news is that rates are still incredibly low, and in the weeks before this turnaround, rates had fallen to the lowest level in three years. “August was the best month for mortgage rates, and 2019 has been the best year since 2011. Mortgage rates loosely follow the yield on the 10-year Treasury. While moves in the Federal Reserve’s rates can affect bond yields, mortgage rates are not necessarily tied to Fed rate cuts or increases. While mortgage rates are still historically low, so many b


The good news is that rates are still incredibly low, and in the weeks before this turnaround, rates had fallen to the lowest level in three years. “August was the best month for mortgage rates, and 2019 has been the best year since 2011. Mortgage rates loosely follow the yield on the 10-year Treasury. While moves in the Federal Reserve’s rates can affect bond yields, mortgage rates are not necessarily tied to Fed rate cuts or increases. While mortgage rates are still historically low, so many b
This was the worst week for mortgage rates in 3 years – and it may be just the beginning Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-13  Authors: diana olick
Keywords: news, cnbc, companies, higher, mortgage, week, shortterm, worst, rate, lows, beginning, rates, performances, low, points


This was the worst week for mortgage rates in 3 years – and it may be just the beginning

The average rate on the 30-year fixed is now 20 basis points higher than it was on Monday and 36 basis points higher than its last low on Sept. 4, according to Mortgage News Daily.

That is the biggest short-term jump since the week following the election of President Trump.

That is the bad news for borrowers. The good news is that rates are still incredibly low, and in the weeks before this turnaround, rates had fallen to the lowest level in three years.

“These sorts of bad performances are most often seen in the wake of stellar performances,” said Matthew Graham, chief operating officer of Mortgage News Daily. “August was the best month for mortgage rates, and 2019 has been the best year since 2011. And that’s precisely why this terrible week is possible: It’s largely a technical correction to the feverish strength in August.”

Analysts now wonder if this is a short-term correction from those recent lows or a new shift toward rising rates.

“The big risk here is that the overall rate rally — the one that began in November 2018—has run its course,” said Graham.

If the market “can match 2011’s performance, there’s a chance rates will move to new all-time lows by the end of the year,” he added. But that would require “some legitimate deterioration in the global growth outlook.”

Mortgage rates loosely follow the yield on the 10-year Treasury. While moves in the Federal Reserve’s rates can affect bond yields, mortgage rates are not necessarily tied to Fed rate cuts or increases.

While mortgage rates are still historically low, so many borrowers have already refinanced, that the pool of those left who could benefit is extremely rate sensitive.


Company: cnbc, Activity: cnbc, Date: 2019-09-13  Authors: diana olick
Keywords: news, cnbc, companies, higher, mortgage, week, shortterm, worst, rate, lows, beginning, rates, performances, low, points


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US futures point to slightly higher open

U.S. stocks were set to open slightly higher Wednesday morning. ET, Dow futures rose 46 points, indicating a positive open of more than 24 points. Futures on the S&P and Nasdaq were also marginally higher. U.S. stocks ended Tuesday little changed amid a fall in tech shares. Meanwhile, according to the American Chamber of Commerce in Shanghai, some American companies are speeding up their move away from China amid the imposition of U.S. tariffs.


U.S. stocks were set to open slightly higher Wednesday morning. ET, Dow futures rose 46 points, indicating a positive open of more than 24 points. Futures on the S&P and Nasdaq were also marginally higher. U.S. stocks ended Tuesday little changed amid a fall in tech shares. Meanwhile, according to the American Chamber of Commerce in Shanghai, some American companies are speeding up their move away from China amid the imposition of U.S. tariffs.
US futures point to slightly higher open Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: silvia amaro
Keywords: news, cnbc, companies, stocks, open, points, higher, trade, china, american, tech, amid, wednesdays, slightly, futures, point


US futures point to slightly higher open

U.S. stocks were set to open slightly higher Wednesday morning.

At around 1:40 a.m. ET, Dow futures rose 46 points, indicating a positive open of more than 24 points. Futures on the S&P and Nasdaq were also marginally higher.

U.S. stocks ended Tuesday little changed amid a fall in tech shares. Ahead of Wednesday’s session, the focus is on trade relations between China and the U.S. Beijing released a tariff exemptions list for products from the U.S. on Wednesday morning.

Meanwhile, according to the American Chamber of Commerce in Shanghai, some American companies are speeding up their move away from China amid the imposition of U.S. tariffs.


Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: silvia amaro
Keywords: news, cnbc, companies, stocks, open, points, higher, trade, china, american, tech, amid, wednesdays, slightly, futures, point


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US futures point to slightly higher open

U.S. stock were set to open slightly higher Monday morning. ET, Dow futures rose 54 points, indicating a positive open of more than 61 points. Futures on the S&P and Nasdaq were both also marginally higher. The drop indicates further weakness in the world’s second largest economy and puts further pressure on Chinese lawmakers to announce new economic stimulus. A weaker Chinese economy raises concerns for other countries, including Germany, given their trading links.


U.S. stock were set to open slightly higher Monday morning. ET, Dow futures rose 54 points, indicating a positive open of more than 61 points. Futures on the S&P and Nasdaq were both also marginally higher. The drop indicates further weakness in the world’s second largest economy and puts further pressure on Chinese lawmakers to announce new economic stimulus. A weaker Chinese economy raises concerns for other countries, including Germany, given their trading links.
US futures point to slightly higher open Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: silvia amaro
Keywords: news, cnbc, companies, higher, chinese, economy, united, worlds, slightly, futures, open, points, weaker, waking, weakness, point


US futures point to slightly higher open

U.S. stock were set to open slightly higher Monday morning.

At around 01:40 a.m. ET, Dow futures rose 54 points, indicating a positive open of more than 61 points. Futures on the S&P and Nasdaq were both also marginally higher.

Investors are waking up to new data out of China, which showed that exports unexpectedly fell in August with a large contraction for shipments to the United States. The drop indicates further weakness in the world’s second largest economy and puts further pressure on Chinese lawmakers to announce new economic stimulus. A weaker Chinese economy raises concerns for other countries, including Germany, given their trading links.


Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: silvia amaro
Keywords: news, cnbc, companies, higher, chinese, economy, united, worlds, slightly, futures, open, points, weaker, waking, weakness, point


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Dow futures trade higher ahead of jobs data

U.S. stock index futures traded higher on Friday morning as investors looked ahead to nonfarm payroll numbers due later in the day. ET Dow futures traded 85 points higher, implying a positive open of more than 57 points. Futures on the S&P and Nasdaq also traded higher but pointed to a slightly negative open. China insiders have also hinted that the upcoming trade talks could lead to a “breakthrough.” On the data front, investors will be keeping an eye on August nonfarm payroll and unemployment


U.S. stock index futures traded higher on Friday morning as investors looked ahead to nonfarm payroll numbers due later in the day. ET Dow futures traded 85 points higher, implying a positive open of more than 57 points. Futures on the S&P and Nasdaq also traded higher but pointed to a slightly negative open. China insiders have also hinted that the upcoming trade talks could lead to a “breakthrough.” On the data front, investors will be keeping an eye on August nonfarm payroll and unemployment
Dow futures trade higher ahead of jobs data Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-06  Authors: spriha srivastava
Keywords: news, cnbc, companies, points, early, data, higher, investors, dow, ahead, recession, trade, futures, talks, jobs, traded


Dow futures trade higher ahead of jobs data

U.S. stock index futures traded higher on Friday morning as investors looked ahead to nonfarm payroll numbers due later in the day.

At 03:33 a.m. ET Dow futures traded 85 points higher, implying a positive open of more than 57 points. Futures on the S&P and Nasdaq also traded higher but pointed to a slightly negative open.

Market focus is largely attuned to global trade developments, after the U.S. and China agreed to hold high-level talks in early October. The news raised hopes that the world’s two largest economies could soon make substantial progress in de-escalating their protracted trade dispute.

China’s Ministry of Commerce said Thursday that Liu He, the country’s top trade negotiator, spoke by phone with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. They agreed to meet in early October for another round of negotiations, according to the Chinese Commerce Ministry. China insiders have also hinted that the upcoming trade talks could lead to a “breakthrough.”

Meanwhile, risk sentiment was also helped by upbeat U.S. economic data on Thursday. U.S. private payrolls increased at their fastest pace in four months in August, according to ADP. The numbers came amid speculation that the decade-long economic expansion is coming to an end. The New York Federal Reserve puts the chance of a recession at 39% in the next 12 months, the highest level since the Great Recession that ended in mid-2009.

On the data front, investors will be keeping an eye on August nonfarm payroll and unemployment data that will be released at 08:30 a.m. ET, where investors will look for signs about the health of the U.S. economy.

Oil prices, meanwhile, rose in the early European trading hours following an earlier dip, with international benchmark Brent crude futures gaining 0.15% to $61.04 per barrel and U.S. crude futures up 0.21% to $56.42 per barrel.

—CNBC’s Sam Meredith contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-09-06  Authors: spriha srivastava
Keywords: news, cnbc, companies, points, early, data, higher, investors, dow, ahead, recession, trade, futures, talks, jobs, traded


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Dow futures jump more than 250 points after confirmation of US-China trade talks

U.S. stock index futures rallied Thursday after the U.S. and China agreed to meet next month in Washington to discuss trade. ET, Dow Jones Industrial Average futures traded 256 points higher, indicating a gain of 264 points at the open. Bank stocks such as J.P. Morgan Chase and Citigroup each traded more than 1% higher along with trade bellwethers Caterpillar and Boeing. China’s Commerce Ministry issued a statement Thursday morning saying that Liu He, Beijing’s top negotiator on trade, had spoke


U.S. stock index futures rallied Thursday after the U.S. and China agreed to meet next month in Washington to discuss trade. ET, Dow Jones Industrial Average futures traded 256 points higher, indicating a gain of 264 points at the open. Bank stocks such as J.P. Morgan Chase and Citigroup each traded more than 1% higher along with trade bellwethers Caterpillar and Boeing. China’s Commerce Ministry issued a statement Thursday morning saying that Liu He, Beijing’s top negotiator on trade, had spoke
Dow futures jump more than 250 points after confirmation of US-China trade talks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-05  Authors: fred imbert sam meredith, weizhen tan, fred imbert, sam meredith
Keywords: news, cnbc, companies, points, 250, released, report, trade, washington, traded, jump, futures, dow, confirmation, agreed, sides, statement, talks, uschina, month


Dow futures jump more than 250 points after confirmation of US-China trade talks

U.S. stock index futures rallied Thursday after the U.S. and China agreed to meet next month in Washington to discuss trade.

Around 7 a.m. ET, Dow Jones Industrial Average futures traded 256 points higher, indicating a gain of 264 points at the open. Futures on the S&P 500 and Nasdaq 100 were both higher.

The VanEck Vectors Semiconductor ETF (SMH) climbed 0.9% in the premarket as Advanced Micro Devices and On Semiconductor both gained more than 1%. Bank stocks such as J.P. Morgan Chase and Citigroup each traded more than 1% higher along with trade bellwethers Caterpillar and Boeing.

China’s Commerce Ministry issued a statement Thursday morning saying that Liu He, Beijing’s top negotiator on trade, had spoken with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

The two sides agreed to hold another round of trade negotiations in Washington, D.C., towards the beginning of next month, and consultations will be made in mid-September in preparation for the meeting, the statement said.

“Both sides agreed they should work together and take practical actions to create favorable conditions for the negotiations,” according to a CNBC translation of the statement.

The announcement came after the world’s two largest economies imposed new tariffs on each other’s goods at the start of the month, marking yet another escalation in the protracted trade war.

Previously, both sides had indicated they would meet in September.

On the data front, investors are likely to closely monitor a flurry of economic reports on Thursday.

The private sector ADP National Employment Report for August will be released at 8:15 a.m. ET, with the latest weekly jobless claims and second-quarter productivity and unit labor costs set to be released slightly later in the session.

A final reading of services Purchasing Managers’ Index (PMI) for August, ISM non-manufacturing data for August, and factory orders for July will also be released early Thursday.

Shares of Slack, maker of the popular workplace messaging chat app, were slammed after the company issued its first earnings report as a public company, briefly dropping below the reference price from its direct listing.

—CNBC’s Evelyn Cheng and Eamon Javers contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-09-05  Authors: fred imbert sam meredith, weizhen tan, fred imbert, sam meredith
Keywords: news, cnbc, companies, points, 250, released, report, trade, washington, traded, jump, futures, dow, confirmation, agreed, sides, statement, talks, uschina, month


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Dow jumps more than 350 points after China and US agree to trade talks next month, tech leads gains

Stocks surged on Thursday after the U.S. and China agreed to meet next month in Washington to discuss trade. The Dow Jones Industrial Average jumped 372.68 points, or 1.4% to 26,728.15. The S&P 500 climbed 1.3% to close at 2,976, led by a 2.1% gain in the tech sector, and closed around 1.7% from its record high. “I think we’re going to have a tough time breaking through it unless there is some news other than they’re going to talk.” Bank stocks such as J.P. Morgan Chase and Citigroup each closed


Stocks surged on Thursday after the U.S. and China agreed to meet next month in Washington to discuss trade. The Dow Jones Industrial Average jumped 372.68 points, or 1.4% to 26,728.15. The S&P 500 climbed 1.3% to close at 2,976, led by a 2.1% gain in the tech sector, and closed around 1.7% from its record high. “I think we’re going to have a tough time breaking through it unless there is some news other than they’re going to talk.” Bank stocks such as J.P. Morgan Chase and Citigroup each closed
Dow jumps more than 350 points after China and US agree to trade talks next month, tech leads gains Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-05  Authors: fred imbert
Keywords: news, cnbc, companies, trade, china, going, jumps, dow, stocks, rose, closed, climbed, talks, tech, leads, gains, semiconductor, think, points, month, careful


Dow jumps more than 350 points after China and US agree to trade talks next month, tech leads gains

Stocks surged on Thursday after the U.S. and China agreed to meet next month in Washington to discuss trade.

The Dow Jones Industrial Average jumped 372.68 points, or 1.4% to 26,728.15. The S&P 500 climbed 1.3% to close at 2,976, led by a 2.1% gain in the tech sector, and closed around 1.7% from its record high. The Nasdaq Composite advanced 1.75% to 8,116.83.

“You have to be careful as we come up to 3,000 on the S&P 500,” said JJ Kinahan, chief market strategist at TD Ameritrade. “I think we’re going to have a tough time breaking through it unless there is some news other than they’re going to talk.”

“At some point, the proof is going to have to be in the pudding,” he added. “I don’t know that we’re necessarily going to see that, so I think investors are going to have to be careful about getting too excited.”

The VanEck Vectors Semiconductor ETF (SMH) climbed 3% as Advanced Micro Devices rose 1.8%. On Semiconductor gained 2.6%. Bank stocks such as J.P. Morgan Chase and Citigroup each closed more than 2% higher while trade bellwethers Caterpillar and Boeing rose 3.3% and 1%, respectively.

China’s Commerce Ministry issued a statement Thursday morning saying that Liu He, Beijing’s top negotiator on trade, had spoken with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.


Company: cnbc, Activity: cnbc, Date: 2019-09-05  Authors: fred imbert
Keywords: news, cnbc, companies, trade, china, going, jumps, dow, stocks, rose, closed, climbed, talks, tech, leads, gains, semiconductor, think, points, month, careful


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Dow futures jump more than 200 points

U.S. stock index futures were higher Wednesday morning. ET, Dow futures rose 204 points, indicating a positive open of more than 203 points. The Caixin/Markit Services Purchasing Managers’ Index (PMI) came in at 52.1 in August — its highest reading since May. It marked the latest escalation in a long-running trade war between the world’s two largest economies. It prompted the new prime minister to announce he would immediately push for a snap election.


U.S. stock index futures were higher Wednesday morning. ET, Dow futures rose 204 points, indicating a positive open of more than 203 points. The Caixin/Markit Services Purchasing Managers’ Index (PMI) came in at 52.1 in August — its highest reading since May. It marked the latest escalation in a long-running trade war between the world’s two largest economies. It prompted the new prime minister to announce he would immediately push for a snap election.
Dow futures jump more than 200 points Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: sam meredith
Keywords: news, cnbc, companies, services, dow, trade, 200, minister, growth, prime, index, worlds, points, pmi, jump, futures


Dow futures jump more than 200 points

U.S. stock index futures were higher Wednesday morning.

At around 03:00 a.m. ET, Dow futures rose 204 points, indicating a positive open of more than 203 points. Futures on the S&P and Nasdaq were both higher.

The moves in pre-market trade come after a report showed growth in China’s services sector had expanded at its fastest rate in three months in August, despite broader economic headwinds.

The Caixin/Markit Services Purchasing Managers’ Index (PMI) came in at 52.1 in August — its highest reading since May. The 50-mark in PMI readings separates growth and contraction.

At the start of the month, the U.S. and China imposed new tariffs on one another’s goods. It marked the latest escalation in a long-running trade war between the world’s two largest economies.

Meanwhile, in Europe, a cross-party alliance of rebel lawmakers defeated British Prime Minister Boris Johnson in parliament on Tuesday, moving to prevent him from taking the country out of the European Union without a formal agreement on October 31.

It prompted the new prime minister to announce he would immediately push for a snap election.

Sterling has since pared some of its recent losses against the U.S. dollar. The U.K. currency edged up 0.2% to climb above $1.21 Wednesday morning, after falling to its lowest level since October 2016 in the previous session.


Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: sam meredith
Keywords: news, cnbc, companies, services, dow, trade, 200, minister, growth, prime, index, worlds, points, pmi, jump, futures


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Dow futures fall more than 200 points after new US-China trade tariffs take effect

U.S. stock index futures were sharply lower Tuesday morning, after the world’s two largest economies began imposing new tariffs on one another’s goods. ET, Dow futures fell 234 points, indicating a negative open of more than 235 points. The U.S. imposed 15% tariffs on a variety of Chinese goods on Sunday, while China imposed new charges on U.S. products from September 1. The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, batterin


U.S. stock index futures were sharply lower Tuesday morning, after the world’s two largest economies began imposing new tariffs on one another’s goods. ET, Dow futures fell 234 points, indicating a negative open of more than 235 points. The U.S. imposed 15% tariffs on a variety of Chinese goods on Sunday, while China imposed new charges on U.S. products from September 1. The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, batterin
Dow futures fall more than 200 points after new US-China trade tariffs take effect Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: sam meredith
Keywords: news, cnbc, companies, points, futures, china, fall, dow, trade, effect, goods, uschina, latest, anothers, imposed, tariffs, 200, lower


Dow futures fall more than 200 points after new US-China trade tariffs take effect

U.S. stock index futures were sharply lower Tuesday morning, after the world’s two largest economies began imposing new tariffs on one another’s goods.

At around 03:20 a.m. ET, Dow futures fell 234 points, indicating a negative open of more than 235 points. Futures on the S&P and Nasdaq were both lower. The moves in pre-market trade come after investors observed a market holiday on Monday.

The U.S. imposed 15% tariffs on a variety of Chinese goods on Sunday, while China imposed new charges on U.S. products from September 1. It marked the latest escalation in their long-running trade war.

The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

President Donald Trump has said officials from both sides were still planning to meet later this month, despite rising tensions.

On Monday, Beijing filed a complaint against Washington at the World Trade Organization over U.S. import duties. China claimed the latest round of tariffs violated a consensus reached by leaders of both countries in Osaka, Japan.


Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: sam meredith
Keywords: news, cnbc, companies, points, futures, china, fall, dow, trade, effect, goods, uschina, latest, anothers, imposed, tariffs, 200, lower


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US futures point to slightly higher open, reversing earlier losses

U.S. stock index futures were slightly higher Friday morning. ET, Dow futures rose 42 points, indicating a positive open of more than 63 points. Futures on the S&P and Nasdaq were both marginally higher, reversing earlier losses. Market focus is largely attuned to global trade developments, after President Donald Trump said that some trade discussions had taken place on Thursday, with more scheduled over the coming weeks. At the same time, economic data has also pointed to a global growth slowdo


U.S. stock index futures were slightly higher Friday morning. ET, Dow futures rose 42 points, indicating a positive open of more than 63 points. Futures on the S&P and Nasdaq were both marginally higher, reversing earlier losses. Market focus is largely attuned to global trade developments, after President Donald Trump said that some trade discussions had taken place on Thursday, with more scheduled over the coming weeks. At the same time, economic data has also pointed to a global growth slowdo
US futures point to slightly higher open, reversing earlier losses Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-30  Authors: sam meredith
Keywords: news, cnbc, companies, trade, reversing, higher, worlds, global, slightly, tensions, futures, wild, losses, weekschinas, point, willing, points, earlier, open


US futures point to slightly higher open, reversing earlier losses

U.S. stock index futures were slightly higher Friday morning.

At around 03:45 a.m. ET, Dow futures rose 42 points, indicating a positive open of more than 63 points. Futures on the S&P and Nasdaq were both marginally higher, reversing earlier losses.

Market focus is largely attuned to global trade developments, after President Donald Trump said that some trade discussions had taken place on Thursday, with more scheduled over the coming weeks.

China’s commerce ministry said Thursday it was willing to calmly resolve the long-running trade dispute, but added it was against any further escalation in tensions. The comments spurred hopes for progress in talks.

Trade tensions have dominated market sentiment for much of this year, with wild swings in global markets as rhetoric between world’s two largest economies fluctuates from conciliatory to combative.

At the same time, economic data has also pointed to a global growth slowdown, ramping up concerns of a possible recession.


Company: cnbc, Activity: cnbc, Date: 2019-08-30  Authors: sam meredith
Keywords: news, cnbc, companies, trade, reversing, higher, worlds, global, slightly, tensions, futures, wild, losses, weekschinas, point, willing, points, earlier, open


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Mini refinance boom goes bust, as mortgage rates turn higher

It didn’t take much to end the party in the refinance market. A small tick higher in mortgage rates caused the sudden surge in refinances to retreat just as quickly. Volume was 66% higher annually, as rates were still higher last year. The rate was 84 basis points lower than a year ago and 14 basis points lower than four weeks earlier. They were still 167% higher than a year ago, proving how volatile the weekly moves are despite rates being lower.


It didn’t take much to end the party in the refinance market. A small tick higher in mortgage rates caused the sudden surge in refinances to retreat just as quickly. Volume was 66% higher annually, as rates were still higher last year. The rate was 84 basis points lower than a year ago and 14 basis points lower than four weeks earlier. They were still 167% higher than a year ago, proving how volatile the weekly moves are despite rates being lower.
Mini refinance boom goes bust, as mortgage rates turn higher Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-28  Authors: diana olick
Keywords: news, cnbc, companies, rates, turn, mortgage, mini, boom, end, points, goes, market, bust, refinance, lower, rate, week, higher


Mini refinance boom goes bust, as mortgage rates turn higher

It didn’t take much to end the party in the refinance market.

A small tick higher in mortgage rates caused the sudden surge in refinances to retreat just as quickly. That pushed total mortgage application volume down 6.2% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 66% higher annually, as rates were still higher last year.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 3.94% from 3.90%, with points increasing to 0.38 from 0.35 (including the origination fee) for loans with a 20% down payment. The rate was 84 basis points lower than a year ago and 14 basis points lower than four weeks earlier.

“U.S. Treasury yields were volatile over the course of the week, as the ongoing trade dispute between the U.S. and China continued to generate uncertainty among investors,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Rates increased for the first time since the week of July 12.”

Despite that, mortgage applications to refinance a home loan fell 8% for the week. They were still 167% higher than a year ago, proving how volatile the weekly moves are despite rates being lower. The refinance share of mortgage activity decreased to 62.4 percent of total applications from 62.7 percent the previous week

Mortgage applications to purchase a home, which are less sensitive to rate changes, fell 4% last week and were just 2% higher than a year ago.

“The drop in rates this summer have not yet led to a significant boost in activity. Uncertainty over the near-term economic outlook and low supply [of homes for sale] continue to be the predominant headwinds for prospective homebuyers,” Kan said.

Consumer confidence in the housing market is still high, according to a monthly Fannie Mae survey, but there is a shortage of homes for sale on the low end of the market, where demand is strongest. That is where home prices are still rising fastest and borrowers have less wiggle room in their wallets. At the higher end, where listings are more plentiful, potential buyers are more sensitive to the latest swings in the stock market and the overall concern over a potential recession.


Company: cnbc, Activity: cnbc, Date: 2019-08-28  Authors: diana olick
Keywords: news, cnbc, companies, rates, turn, mortgage, mini, boom, end, points, goes, market, bust, refinance, lower, rate, week, higher


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