“Lenders continue to reduce capacity, with mortgage rates still above 7% and origination volume moving at a slow pace,” he said. “Even with challenging affordability conditions and fairly strong housing demand, credit remains tight, and housing supply is low.”
The modest credit thaw last month did briefly unlock some pent-up borrower demand. Mortgage applications bounced back 2.6% after three consecutive weeks of declines, thanks to a temporary pullback in mortgage rates that week.
The conventional 30-year rate fell 11 basis points, and the FHA rate plunged 17 basis points to 6.92%, dipping below 7% for the first time in three weeks.
“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.
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