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- In-line with the 10-year U.S. Treasury yield and financial markets adjusting to anticipated changes in monetary policy that will combat inflation, mortgage rates continued its upward streak since 2022 beginning.
- Highest since early April 2020, 30-year fixed-rate mortgage averaged 3.56% with an average 0.7 point for the week ending Jan. 20, 2022, up from last week's 3.45%; higher than year ago the 30-year FRM averaged 2.77%, according to the Freddie Mac Primary Mortgage Survey.
- "As a result of higher mortgage rates, purchase demand has modestly waned in advance of the spring homebuying season. However, supply remains near historically tight levels and home prices remain high, keeping the market competitive," chief economist Sam Khater commented.
- National Association of Realtors indicated a drop of 4.6% in December closed sales of previously owned homes to a seasonally adjusted, annualized rate of 6.18M units; sales were down 7.1% Y/Y.
- 15-year fixed-rate mortgage averaged 2.79% with an average 0.6 point, up from last week when it averaged 2.62% and a year ago at this time, the 15-year FRM averaged 2.21%.
- 5-year Treasury indexed hybrid adjustable-rate mortgage averaged 2.60% with an average 0.3 point, up from last week when it averaged 2.57% and a year ago at this time, the 5-year ARM averaged 2.80%.
- Mortgage applications rose 2.3% for the week ended Jan.14, while refinance index dropped 3.1% from prior week, as per data from Mortgage Bankers Association; growth was led by a 7.9% increase in the trade group's seasonally adjusted purchase index.
- MBA forecasts that 30-year mortgage rates will reach 4% by 2022 end.
- Homebuilding stocks - (NYSE:LEN), (NYSE:TOL), (NYSE:DHI), (NYSE:PHM), (NYSE:MTH) - trading in green in early trading hours.
- ETFs Watch: (NYSEARCA:XHB), (NYSEARCA:HOMZ) and (NYSEARCA:REZ) in green.