Mortgage Mix: Rates Slightly Down, Memorial Weekend Saw Application Adjustment

Editor’s Note: The Mortgage Mix is RISMedia’s weekly highlight reel of need-to-know mortgage-industry happenings. Watch for it each Friday afternoon.

  • As reported by Freddie Mac, mortgage rates have “pulled back.” After being above 7% the final week of May, the first week of June saw the 30-year rate slip down to 6.99%, while the 15-year rate came down to 6.29% (from 6.36%). 
  • “Mortgage rates retreated this week given incoming data showing slower growth,” said Sam Khater, Freddie Mac’s chief economist. “Rates are just shy of 7%, and we expect them to modestly decline over the remainder of 2024. If a potential buyer is looking to buy a home this year, waiting for lower rates may result in small savings, but shopping around for the best rate remains tremendously beneficial.”
  •® Chief Economist Ralph McLaughlin said: “While homebuyers are certainly welcoming the marginal drop in rates, they remain near two-decade highs and continue to present challenges to both buyers and sellers alike.”
  • The Mortgage Bankers Association (MBA) found mortgage applications also fell; during the final week of May, the Market Composite index (measuring application volume) fell 5.2% (albeit with an adjustment included for the Memorial Day holiday weekend).
  • Government purchase volume was down less, helped by growth in VA applications. The market is relying on first-time homebuyer demand, and many first-time buyers do use government lending programs,” said Mike Fratantoni, MBA’s SVP and chief economist.
  • Mortgage industry leaders (such as United Wholesale Mortgage Executive VP and Chief Technology Officer Jason Bressler) have said despite their companies’ incorporation of machine learning (“AI”) technology, they do not believe or intend for the technology to replace human mortgage professionals.
  • One real estate brokerage is hoping to strike a chord with its latest mortgage hire, as Michael Bonagura—an industry veteran who also has a storied music career, having played guitar for Barry Gordy and performed on multiple award-winning albums—joins Corcoran Reverie. Managing broker Chris Grimes lauded Bonagura’s “creative spirit” as one of several reasons he fit in with the company.

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