{"id":2093893,"date":"2023-11-08T12:08:02","date_gmt":"2023-11-08T17:08:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-30-year-mortgage-rate-plunges-by-most-in-nearly-16-months-mba\/"},"modified":"2023-11-08T12:12:14","modified_gmt":"2023-11-08T17:12:14","slug":"us-30-year-mortgage-rate-plunges-by-most-in-nearly-16-months-mba","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-30-year-mortgage-rate-plunges-by-most-in-nearly-16-months-mba\/","title":{"rendered":"US 30-year mortgage rate plunges by most in nearly 16 months \u2013 MBA"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-30-year-mortgage-rate-plunges-by-most-in-nearly-16-months-mba%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2093893&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p><span class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__small__1kGq2\" data-testid=\"Text\">By <\/span>Amina Niasse<\/p>\n<p>November 8, 2023 \u2013 2:31 PM\u2063 UTC<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<blockquote><p>The interest rate on the most \u200ccommon\u200d type of\u200c U.S. residential mortgage plummeted last week, marking the largest drop in nearly 16 months. This was fueled by a\u200b rally \u200din the Treasury market, which caused benchmark yields to decrease\u200b and subsequently\u200d lowered home loan costs.<\/p><\/blockquote>\n<blockquote><p>The\u200b Mortgage Bankers Association (MBA) reported \u200cthat the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-interest-rates-rise-to-highest-level-since-2006\/\" title=\"Mortgage Interest Rates Rise To Highest Level Since 2006\">average contract rate<\/a> on a \u206230-year fixed-rate mortgage fell by a\u2064 quarter\u2063 percentage\u200d point to 7.61% in the week ending November 3. This\u2063 is the lowest rate in about a month and the biggest weekly decline since late July 2022.<\/p><\/blockquote>\n<blockquote><p>This second consecutive\u2062 weekly decline has brought down borrowing\u2063 costs \u2062for home \u2062purchases from the two-decade highs near 8% reached in October. These highs were a \u200bresult of rising yields\u200c on the 10-year Treasury note, \u2063which\u2063 serves as the benchmark for U.S. home loan \u200drates.<\/p><\/blockquote>\n<blockquote><p>However, last week \u2062saw a sharp reversal\u2063 in yields after the U.S. \u2063Treasury announced that upcoming debt issuance would be lower than expected. Additionally, the Federal Reserve decided to keep its\u200d <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-30-year-mortgage-rate-plunges-by-most-in-nearly-16-months-mba\/\" title=\"US 30-year mortgage rate plunges by most in nearly 16 months \u2013 MBA\">key\u200d overnight policy rate unchanged<\/a> for a second consecutive\u2063 meeting. \u2064These factors,\u2063 along with data indicating a slower job market, contributed to the decrease in rates.<\/p><\/blockquote>\n<blockquote><p>&#8220;Last week&#8217;s decrease in rates \u2062was driven by the U.S. \u200cTreasury&#8217;s issuance update,\u2064 the Fed striking a dovish\u200b tone in the November FOMC (Federal Open \u200bMarket Committee) statement, and data \u200dindicating a slower job market,&#8221; said Joel Kan, the\u200b MBA&#8217;s vice \u200bpresident \u2064and deputy \u200cchief\u2062 economist.<\/p><\/blockquote>\n<blockquote><p>The \u2064MBA&#8217;s mortgage market composite index, which measures the volume of mortgage applications for both home purchases and refinancings of\u200d existing loans, rose 2.5% from the\u200d previous week\u2062 to 165.9.<\/p><\/blockquote>\n<blockquote><p>While purchase applications increased by 3% compared \u2062to the previous week, they are still 20% lower than the same time last year. This suggests that prospective buyers are still hesitant despite the decrease \u2063in rates. Sellers, on the other hand, are holding onto their homes due to the lower mortgage rates, resulting in limited inventory in the housing market.<\/p><\/blockquote>\n<blockquote><p>Reporting By Dan Burns and Amina Niasse; Editing by Chizu \u2062Nomiyama and Andrea Ricci<\/p><\/blockquote>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t \t\t\u2062\t\tShare \u2064this post!\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>The House passes a resolution\u200b to\u200c censure Rep. Tlaib while the Deep\u2063 State and Academia &#8220;secured&#8221; the 2020 \u200cElection.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>After a \u2063release of a new report from the House Weaponization \u200dOf Government Subcommittee, two GOP panel members speak on the recent \u200dfindings \u200dof how the Federal Government partnered \u200cwith universities to censor \u200bconservative\u2064 speech.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>Virginia members of congress tell One America News why they remain optimistic about \u200dGOP\u2064 victories in today&#8217;s Virginia State elections for the Senate and House of Delegates.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>Police hold a press conference over\u2062 the recent \u200cdeath of a Jewish man who was killed while protesting\u2062 in support of Israel.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>Amazon to invest millions in Olympus LLM model to rival OpenAI and Alphabet.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>Meta said in\u200c a blog post it would require advertisers \u2064to disclose if their altered or created ads.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>China&#8217;s ByteDance, the parent of short \u200dvideo \u200dapp TikTok, is offering to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/berkshire-hathaways-operating-earnings-surge-as-buffet-repurchases-27-billion-in-stock-in-2021\/\" title=\"Berkshire Hathaway\u2019s Operating Earnings Surge as Buffet Repurchases  Billion in Stock in 2021\">buy back shares<\/a> from its employees outside the United States.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>US watchdog\u200c proposes rules for Big Tech payments and digital wallets, aiming \u200bfor consumer safeguards.<\/h2>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> What were the primary factors that \u2063led to the recent drop \u2064in interest rates for U.S. residential mortgages?<\/h2>\n<p><span>  The recent drop in interest rates for U.S. residential mortgages has sparked optimism in the housing\u2064 market. Last week, the\u200d average contract rate\u200b on a 30-year fixed-rate mortgage \u2064dropped by a quarter percentage point to 7.61%, the lowest\u200d rate in about a month. This significant decline is the largest weekly drop since late July \u20642022.<\/p>\n<p>The decrease in rates\u2063 is\u2063 primarily \u2064attributed to a rally in the Treasury\u2063 market, which led\u200b to \u2064a decrease in \u200bbenchmark \u2062yields and subsequently lowered home loan costs. This comes as a relief for potential \u2064homebuyers,\u200b as borrowing costs\u200b have been \u200chovering near two-decade\u2063 highs near 8% since\u200c October. These high rates \u200cwere a\u200d result of rising yields on the 10-year Treasury note, which serves as the benchmark for U.S. home loan rates.<\/p>\n<p>However, last week\u2063 saw a sharp reversal in\u2064 yields \u2063after the\u2064 U.S. Treasury announced that upcoming debt issuance would be lower than \u2063expected. Additionally, the Federal \u200bReserve decided to keep its key overnight policy rate unchanged for a second\u200c consecutive\u200d meeting. These factors, along with\u2064 data indicating a slower job market, \u200bcontributed to the decrease in rates.<\/p>\n<p>Joel Kan,\u2064 the Mortgage Bankers Association&#8217;s vice president and deputy chief economist, \u2063highlighted that \u200blast week&#8217;s decrease in\u2062 rates was driven by the U.S. Treasury&#8217;s issuance update, the Federal Reserve&#8217;s dovish tone in the November Federal Open Market Committee (FOMC) statement, and data indicating a slower\u2063 job \u2063market.<\/p>\n<p>While the decrease\u2063 in rates\u2062 has\u200d led to \u2063a 2.5% \u2064increase in the MBA&#8217;s mortgage market composite index, which measures the \u200dvolume of \u200cmortgage applications for both home purchases and refinancings, \u2064there is still some hesitancy among prospective \u200cbuyers. Purchase\u2062 applications have increased by\u200c 3% compared to the previous week but are still 20% lower than the \u2064same \u200ctime last year. This\u2063 suggests \u2062that despite the decrease in rates, potential buyers\u2062 are still cautious. On the other hand, sellers are\u2062 holding \u2064onto their homes due\u200c to\u2063 the lower mortgage rates, resulting in limited\u200b inventory in the\u200b housing market.<\/p>\n<p>Overall, the recent drop in interest rates for U.S. residential mortgages has provided potential homebuyers with \u2064more affordable financing \u200coptions. The decrease\u200d in rates is \u2062a result\u2063 of various\u200c factors, including a rally in the Treasury market and the\u2064 Federal Reserve&#8217;s decision\u2063 to keep rates unchanged. However, despite the lower rates, prospective \u200dbuyers remain hesitant,\u200d leading to limited inventory in the housing market. With \u2064the \u200congoing fluctuations in the economy and the \u200buncertain future of interest rates,\u200d it \u200dwill be interesting to see \u200dhow\u200c the \u200chousing market evolves in \u200bthe\u2063 coming months.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By\u00a0Amina Niasse November 8, 2023 \u2013 2:31 PM UTC Advertisement (Reuters) \u2013 The interest rate on the most common type of U.S. residential mortgage plunged last week by the most in nearly 16 months on the back of a rally in the Treasury market that drove down the benchmark yields used to set home loan<\/p>\n","protected":false},"author":1911,"featured_media":2093894,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2093893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2093893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2093893"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2093893\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2093894"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2093893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2093893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2093893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}