The year-over-year numbers paint a different picture, with total mortgage fixeds increasing by 6.11%. Purchase fixeds increased by 5.01% and the volume of rate/term refinances jumped 92.17% compared to last year. However, the volume of cash-out refinance fixeds decreased 3.9% year-over-year.
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Andrew Rose, Senior Director and Head of Trading at MCT, commented on the potential impact of upcoming economic reports: “If the upcoming Non-Farm Payroll report and Consumer Price Index (CPI) continue to be in line with expectations and these economic indicators continue to show progress, then a rate cut or two is possible by the end of the year.”
Lower rates would not only make mortgages more affordable for buyers, but also encourage more homeowners to put their properties on the market, helping to alleviate a supply shortage that has plagued the market for years.
“Limited home supply and mortgage rates hovering around 7% contributed to the decline in activity in June,” MCT wrote in the report. “As the market overcomes these constraints, we expect the mortgage industry to trend sideways over the next two to three months. Market supply appears to have peaked at the beginning of the summer, and rates have remained stable, so we do not expect significant changes in transaction volumes in the near term.”