Mortgage rates trended sharply lower last week after comments from the Fed that hinted at an upcoming pivot. Existing home sales surged in February and new homes sales inched up as well. Mortgage application submissions increased as did continuing jobless claims. Initial jobless claims decreased.
Mark Update
- Existing home sales surged 14.5% month-over-month in February, ending the year-long streak of declines and jumping by the largest monthly percentage in three years. Compared to February 2020, the median existing-home sales price decreased 0.2% to $363,000.
- Mortgage application submissions increased a composite 3% during the week ending 3/17. Refinance submissions increased 5% while purchase submissions rose 2%.
- The Federal Open Market Committee (FOMC) voted to hike the benchmark interest rate another 0.25% and hinted at just one more quarter-point hike. The markets saw an indication of an upcoming Fed pivot in Fed Chair Powell’s press conference comments, causing a sharp downward trend in mortgage rates.
- Continuing jobless claims increased more than expected during the week ending 3/11 – rising by 14,000 to reach a level of 1,694,000. Initial jobless claims fell by 1,000 despite a predicted increase, dropping to a level of 191,000 during the week ending 3/18.
- New home sales increased by 1.1% month-over-month in February.
