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Home prices declined 0.77% from June to July, the first monthly decline in nearly three years, according to Black Knight, a mortgage software, data and analytics firm.
While the drop may seem small, it is the largest single-month decline in prices since January 2011. It is also the second-worst July performance dating back to 1991.
“Further price corrections are likely on the horizon as we move into what are typically more neutral seasonal months for the housing market,” said a Black Knight executive.

Home prices declined 0.77% from June to July, the first monthly fall in nearly three years, according to Black Knight, a mortgage software, data and analytics firm.
While the drop may seem small, it is the largest single-month decline in prices since January 2011. It is also the second-worst July performance dating back to 1991, behind the 0.9% decline in July 2010, during the Great Recession.

The sharp and fast rise in mortgage rates this year caused an already pricey housing market to become even less affordable. Home prices rose sharply during the first years of the Covid pandemic because demand was incredibly strong, supply historically weak and mortgage rates set more than a dozen record lows.

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Now, housing affordability is at its lowest level in 30 years. It requires 32.7% of the median household income to purchase the average home using a 20% down payment on a 30-year mortgage, according to Black Knight. That is about 13 percentage points more than it did entering the pandemic and significantly more than both the years before and after the Great Recession. The 25-year average is 23.5%.

“We’ve been advising for quite some time that the dynamic between interest rates, housing inventory and home prices was untenable from an affordability perspective, and at some point, something would have to give,” said Andy Walden, vice president of enterprise research and strategy at Black Knight.
“We’re now seeing exactly that, with July’s data providing clear evidence of a significant inflection point in the market,” he added. “Further price corrections are likely on the horizon as we move into what are typically more neutral seasonal months for the housing market.”

An aerial view from a drone shows homes in a neighborhood on January 26, 2021 in Miramar, Florida. According to two separate indices existing home prices rose to the highest level in 6 years.
Joe Raedle | Getty Images

Prices historically rise on average 0.4% between June and July, because the market is heavily weighted toward families buying larger, more expensive homes. Families like to move during the summer, when school is out.
Even during the Great Recession home prices typically rose marginally from March through May, due to the seasonality of the market. All the price declines during that era happened in the months from July through February.
Some local markets are seeing even steeper declines over the last few months. San Jose, California, saw the largest, with home prices now down 10% in recent months, followed by Seattle (-7.7%), San Francisco (-7.4%), San Diego (-5.6%), Los Angeles (-4.3%) and Denver (-4.2%).
Home prices were still 14.3% higher in July compared with July 2021, which is more than three times the historical annual price growth, but the majority of that growth took place over the first five months of 2022, before the big spike in mortgage interest rates.
The average rate on the popular 30-year fixed mortgage began this year right around 3%, according to Mortgage News Daily. It climbed slowly month to month, pulling back slightly in May but then shot more dramatically to just over 6% in June. It is now hovering around 5.75%.

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We’re initiating a position in off-price retailer TJX Companies (TJX), buying 350 shares at roughly $64.38 each. Following the Wednesday’s purchase, TJX will represent about 0.75% of Jim Cramer’s Charitable Trust, the portfolio we use the Investing Club. Off-price retailers tend to do best when there are disruptions in the supply chain and when retailers are flushed with inventory like they are now. When brand name merchandise starts to pile up and stores are forced to make room for new fashion and season trends, they are forced to mark down the excess and offload it to companies like TJX, which opportunistically pounce on the high-quality brands to sell it to customers at fire-sale prices. Part of TJX’s business is apparel-focused, selling designer names and everyday brands for less through T.J. Maxx, Marshall’s and Sierra stores. The company also operates home furnishings stores under the HomeGoods and HomeSense banners. The retailer offers a fun, treasure hunting experience for shoppers, thanks to its value prices of quality brands offered in its stores. TJX stock was not in our Bullpen, which we use as a watch list of names we’re considering buying for the portfolio. However, we don’t limit ourselves to just calling up Bullpen stocks, like we did with Starbucks (SBUX) on Monday. We’re always on the look out for new companies to add and sometimes come across ideas while analyzing industry trends. Case in point: Back in June, we pointed TJX out as a winner from the inventory warnings of Walmart (WMT) and Target (TGT). Last week on “Mad Money,” Jim highlighted it as what to buy to take advantage of the inventory glut that was evident as major retailers reported second-quarter earnings this month. We also discussed the stock on Wednesday’s “Morning Meeting” for Club members, and how TJX can go to the full-price retailers with oversupply problems and get the pick of the litter. When you go over the conference calls at Target, Walmart, Macy’s (M), Nordstrom (JWN), and many other retailers, it’s clear this moment is nirvana for the off-price chains. Excess inventory has been a common theme throughout earning season. Retailers right now are working frantically to right-size inventory positions and discount items to get them out the door. Some companies are forced to get super promotional, and others have been scaling down future buying too. But a third component to fix inventory position is to sell to off-price chains, like what we described earlier. By the way, the part about taking less inventory for the future also helps these off-price chains. If a company like Target doesn’t want this stuff anymore, but the makers of these products have already manufactured them, then the middlemen have to find another home for these products somewhere. While the off-price stores aren’t their first choice — because these companies are cheap — in many cases, it’s the only choice, because nobody else wants to buy in an inventory glut. So, right now, the off-price chains are getting an incredible opportunity to pick up all sorts of merchandise for next to nothing. But remember that’s the long-term opportunity. It doesn’t mean they’re doing that great right now. Last week, TJX reported and the numbers were just so-so. The company’s sales came in weaker than expected, with U.S. same-store sales down 5%, dragged down by HomeGoods. But their earnings came in a little higher than expected. Worse, TJX cut its full-year same-store sales forecast and slightly reduced its earnings forecast. When the market first digested the numbers, TJX shares opened lower. However, TJX shares closed the day higher, because management confirmed how great of a buying environment it is right now. On the call, CEO Ernie Herrman pointed out what we said earlier: “We are seeing extraordinary off-price buying opportunities in the marketplace and have no issues with overall availability. We are in a terrific inventory position, and we have plenty of open-to-buy to take advantage of the current environment. This allows us to offer even more exciting merchandise and value to our shoppers, which is our top priority every day.” There are going to have tons of high quality products that they can sell at extremely low prices because they picked this stuff for next to nothing. “You need to think of TJX as a vulture: they’re just waiting for other stores to keel over, then they can feast on the remains. You can practically hear them salivating for this marked down inventory that the big chains have no choice but to get rid of,” Jim explained on “Mad Money. While same-store sales may have been ugly and the forecast for the current quarter wasn’t great, on the conference call, management said their quarter-to-date same-store sales were tending in line with their guidance. That means the second quarter, the one they just reported, is likely the trough for these numbers and has us very bullish about the end of the year and the all-important holiday season. TJX Companies also returns cash to shareholders via dividends and buybacks. The current dividend yield is about 1.8%. Through the first half of its fiscal 2023, the company has repurchased a total of $1.3 billion of stock, retiring 21.4 million shares. The company expects to repurchase approximately $2.25 billion to $2.5 billion of stock in fiscal 2023. That leaves about $1 billion for the current quarter and the next. The company’s current market capitalization is nearly $76 billion. We are initiating our TJX position with a price target of $74 per share (about 15% higher than current levels), representing roughly 21x fiscal year 2024 earnings estimates of $3.50, which represents growth from the $3.10 the company is estimated to earn in fiscal year 2023 (it’s current year). We think this multiple is very reasonable given the fact the 5-year average on the next 12-month earnings is about 22x. Still, we plan to start relatively small in TJX to leave plenty of room to scale into the position over time on broader market weakness. We note that off-price peer Burlington Stores (BURL) is scheduled to report earnings Thursday morning before the opening bell. Since the group tends to get lumped together, we expect TJX will trade off that quarter, for better or for worse. Either way, we are not making a call on the BURL number as TJX is the superior operator in the group and this is a long-term investment, not a trade. (Jim Cramer’s Charitable Trust will be long TJX following this trade. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

The clearance rack at T.J. Maxx clothing store in Annapolis, Maryland, on May 16, 2022, as Americans brace for summer sticker shock as inflation continues to grow.
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Every weekday the CNBC Investing Club with Jim Cramer holds “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Wednesday’s key moments: Watch this 10-year yield level We see TJX as a long-term winner Nvidia, Salesforce earnings on deck 1. Watch this 10-year yield level Stock were back in the green Wednesday, as the major U.S. stock averages try to put an end to a three-day losing streak. Leading the way is the tech-heavy Nasdaq Composite, rising around 0.3% despite the 10-year Treasury yield climbing around six basis points to 3.11%. A basis point equals 0.1%. This is noteworthy because, in general, rising bond yields weigh on growth stocks, many of which are in the technology sector. Higher interest rates make investors reconsider what they are willing to pay today for a company’s future cash flows, and the conclusion is typically that they want to pay less, pressuring stock prices. Jim Cramer said during the “Morning Meeting” that the key level he’s watching for the 10-year Treasury yield is around 3.5% — roughly where it topped out at in mid-June around the time of the S & P 500’s closing low for 2022. That also coincided with the recent peak in the oil market. “If we can hold and not take out this level [on the 10-year yield], I think we’ll be off to the races” in the stock market, Cramer said, noting the Club has raised cash in recent weeks. “I’m not sanguine, but I think we’re very opportunistic at this point,” he added. 2. We see TJX as a long-term winner TJX Companies — the parent of TJ Maxx, Marshalls and HomeGoods — is not on the Investing Club’s official watchlist known as the Bullpen . However, we’ve begun to take a hard look at the company recently as retailers like Macy’s keep talking about inventory gluts. ( Update: We initiated a position in TJX .) As we wrote in June , TJX is a potential winner when other retailers have too much stuff. Between Tuesday’s close and June 7, the day before we published our June story, shares of TJX are up nearly 5%. The S & P 500, by contrast, is down nearly 1%. “TJ is very exciting. That’s the point I’m trying to make,” Cramer said, referring what it’s like shopping in TJ Maxx’s stores, which are filled with off-price merchandise that varies often, delivering a sort of treasure-hunt like experience. “It’s exciting. I like it very much. … Very pro, and I just keep thinking about it.” Cramer said he recognizes that TJX’s recent quarter wasn’t great — beating on earnings estimates while revenue and same-store sales results came in light — but “this is about the future.” “The future is that Macy’s has inventory, that Target has inventory, that Walmart has inventory, that Nordstrom has inventory, that Urban Outfitters has inventory,” Cramer said, which means there’s plenty of opportunity for TJX’s buyers to be on the offensive and acquire fresh merchandise to fill its racks and shelves. 3. Nvidia, Salesforce earnings on deck Club holdings Nvidia (NVDA) and Salesforce (CRM) are both set to report earnings after the close Wednesday. In addition to exploring key questions looming over both quarters earlier this week , Cramer weighed in during the “Morning Meeting.: On chipmaker Nvidia: “We love Nvidia .. but the problem is they preannounced and last time they preannounced they weren’t done,” Cramer said, suggesting that despite the company’s warning earlier in August about gaming weakness, there could be additional near-term headwinds. On Salesforce: “Salesforce, we know, is a very hard. We have a game of the dollar, which is not good,” Cramer said, referring to the e ffects of the strong dollar on corporate earnings . (Jim Cramer’s Charitable Trust is long CRM and NVDA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. More

The Tour announced increased prize money, new player benefits and player commitments.
Qualified members will be guaranteed a minimum of $500,000 a year.
The changes come as the Tour competes with upstart LIV Golf league for players.

PGA Tour Commissioner Jay Monahan speaks during a press conference prior to the TOUR Championship at East Lake Golf Club on August 24, 2022 in Atlanta, Georgia.
Cliff Hawkins | Getty Images

The PGA Tour on Wednesday announced prize increases, expanded benefits and participation commitments from top players as it faces competition from the upstart LIV Golf league.
The Tour said it is adding four elevated events that will each have purses of at least $20 million, doubling its total bonus pool money and raising its guaranteed minimum earnings for full members. Top players are committing to compete in at least 20 events a year, it said.

The changes come after the Tour suspended players including Phil Mickelson and Dustin Johnson for participating in the Saudi-backed LIV Golf, which has been luring players with generous prizes and guaranteed money. Earlier this month, LIV participants including Mickelson filed an antitrust lawsuit against the PGA Tour, alleging that the association is limiting LIV’s ability to fairly compete with the tour.
“Our top players are firmly behind the TOUR, helping us deliver an unmatched product to our fans, who will be all but guaranteed to see the best players competing against each other in 20 events or more throughout the season,” PGA Tour Commissioner Jay Monahan said in announcing the changes.
The Tour said its top players will participate in 12 total elevated events, four major tournaments, the Players Championship and three tour events of their choosing. The four new elevated events have not yet been announced.
“Sometimes what’s happened on the PGA TOUR is we all act independently and we sort of have our own schedules, and that means that we never really get together all that often” two-time FedEx champion Rory McIlroy said an announcement. “I think what came out of the meeting last week and what Jay just was up here announcing is the fact that we’ve all made a commitment to get together more often to make the product more compelling.”
As part of the changes, all players who graduate from the developmental Korn Ferry Tour and above are guaranteed a $500,000 league minimum. The total bonus pool for its prize fund will double to $100 million.
Qualification into the PGA Championship will now result in a two-season PGA Tour exemption, allowing players to guarantee their tour card for the near future.

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Peloton has struck a partnership with Amazon in a bid to broaden its customer base and sell more products in the United States.
This will mark Peloton’s first partnership with another retailer to sell its merchandise. Until now, the company relied on its website and physical showrooms.
Peloton Chief Commercial Officer Kevin Cornils said the company will look to other retailers for similar deals to extend its reach.

Peloton has struck a partnership with Amazon in a bid to broaden its customer base and win back investors’ confidence, as revenue growth slows from pandemic highs and its stock price plunges.
In its first foray outside of its core direct-to-consumer business, Peloton starting Wednesday will be hawking a selection of its connected-fitness equipment and accessories on Amazon’s website in the U.S.

That will include its original Bike, which retails for $1,445. It will also be selling its strength product known as Peloton Guide, which costs $295. Excluded from the tie-up are its more expensive Bike+ and Tread treadmill machine.
Peloton’s stock was up about 8% in pre-market trading.
Peloton’s Chief Commercial Officer Kevin Cornils said there are already about half a million searches on Amazon each month for Peloton’s products, despite its lack of presence on the site before Wednesday.
“Post-Covid, the retail environment — online and in stores — is continuing to evolve, and that’s something that we’re trying to understand better to make sure the Peloton of the future is calibrated appropriately for that,” Cornils said in a phone interview.
“We want to make it as easy as possible to get a Peloton,” he added.

This will mark Peloton’s first partnership with another retailer to sell its merchandise. Until now, the company has relied on its website and physical showrooms, selling directly to consumers. But under CEO Barry McCarthy, who took over in February, Peloton has committed to widening its distribution globally and lowering customer acquisition costs to get the business back to profitability.
Peloton embarked on an $800 million restructuring plan when the company’s founder, John Foley, stepped down from the CEO role in February as costs spiraled out of control and losses mounted. It has since been testing a subscription model for its equipment, as another way to drum up sales. Peloton also exited all of its in-house manufacturing to simplify its supply chain.
Earlier this month, the company announced additional cost-cutting measures, including more layoffs, store closures, about-face price hikes and exiting the last-mile delivery business.
Peloton’s share price is down about 70% year to date. Its market cap has fallen to around $3.7 billion, from as high as $50 billion in early 2021.
The move onto Amazon signals McCarthy, formerly of Netflix and Spotify, is not afraid of taking risks to get the business back on stronger footing. McCarthy has also said that Peloton’s goal is to one day count 100 million members, a goal that Foley laid out in 2020. Peloton ended its latest quarter with about 7 millions members.

Testing the waters

In addition to the Bike and Guide, Peloton will sell on Amazon a selection of accessories, including its branded cycling shoes, bike mat, weights, yoga blocks, water bottle and heart rate armband. Shoppers will also see an assortment of its branded apparel, including sports bras, leggings, shorts, tank tops, hats and jogger pants.
“This is a really good start for us, with a digital retailer, to test the waters,” Cornils explained.
Over time, it’s possible Peloton will adjust its assortment on Amazon as it learns what people are looking for, he said. It’s also possible Peloton will look to other retailers for similar deals to extend its reach, he added.
It could also make sense for Amazon and Peloton to consider making the fitness company’s live and on-demand workout content another perk for paying Amazon Prime customers. Cornils didn’t confirm whether this was a possibility.
Analysts have been speculating that Peloton is considering ways to broaden the distribution of its content under McCarthy, a content and subscription guru.
Shoppers who buy a Peloton Bike from the Amazon site will be able to select a self-assembly option rather than schedule time with a professional to put it together. The option for expert assembly will be available for people who would prefer it.
Cornils said it will be a learning experience for the company to see what customers prefer and how they respond to a self-assembly option. This is not something that Peloton has offered before, but it’s another way the company can slash costs.
Peloton’s support team will manage ongoing customer service requests related to repairs, maintenance requests, subscriptions and general inquiries, according to the company, while Amazon’s customer service team will provide support for product purchases, delivery, installation and returns.
“Physical retail is always going to be an important part of our strategy,” said Cornils. “This is more of a reflection of us trying to match the consumer.”
Peloton is set to report its fiscal fourth-quarter results before the market opens on Thursday. Analysts are expecting the company to book a per-share loss of 72 cents on revenue of $718.19 million, according to Refinitiv consensus.

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If fully realized, the move would represent a turnaround for the country’s energy policy following 2011’s Fukushima disaster.
Most of Japan’s nuclear plants have remained idle since then, but attitudes appear to be shifting.
Japan is targeting carbon neutrality by the year 2050.

Japanese Prime Minister Fumio Kishida photographed during a news conference on Wednesday, Aug. 10, 2022.
Rodrigo Reyes-Marin | Bloomberg | Getty Images

The prime minister of Japan said Wednesday that his country would restart more idled nuclear power plants and look into the feasibility of developing next-gen reactors.
Fumio Kishida’s comments, reported by Reuters, build upon remarks he made back in May, and come at a time when Japan — a big importer of energy — is looking to bolster its options amid ongoing uncertainty in global energy markets and the war between Russia and Ukraine.

If fully realized, the move would represent a turnaround for the country’s energy policy following 2011’s Fukushima disaster, when a powerful earthquake and tsunami resulted in a meltdown at Japan’s Fukushima Daiichi nuclear power plant.
Most of Japan’s nuclear plants have remained idle since then, but attitudes appear to be shifting. Earlier this month, a former executive director of the International Energy Agency said public support in Japan for a nuclear restart now stood at over 60%.
Japan is targeting carbon neutrality by 2050. Under an “ambitious outlook,” the country’s 6th Strategic Energy Plan envisages renewables accounting for 36% to 38% of its power generation mix in 2030, with nuclear responsible for 20% to 22%.
“Stable use of nuclear power will be promoted on the major premise that public trust in nuclear power should be gained and that safety should be secured,” according to an outline of the plan.
While Japan may be refocusing its attention on nuclear, the technology is not favored by all.

Critics include Greenpeace. “Nuclear power is touted as a solution to our energy problems, but in reality it’s complex and hugely expensive to build,” the environmental organization’s website states.
“It also creates huge amounts of hazardous waste,” it adds. “Renewable energy is cheaper and can be installed quickly. Together with battery storage, it can generate the power we need and slash our emissions.”
—CNBC’s Lee Ying Shan contributed to this report More

Vacasa picked Rob Greyber, who led Expedia’s Egencia division from 2009 to 2020, to succeed current Chief Executive Matt Roberts, effective Sept. 6.
Greyber was a protege of Uber CEO Dara Khosrowshahi, who was the chief executive of Expedia from 2005 to 2017.
“I think one of the things he showed me as a leader as that you have to step back sometimes,” Greyber said of Khosrowshahi.

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As Vacasa works to grow its share in the vacation rental market, the property management company is tapping longtime travel executive Rob Greyber to be its next CEO.
Greyber, who led Expedia’s Egencia division from 2009 to 2020, will succeed current Chief Executive Matt Roberts, effective Sept. 6.

The leadership change comes two weeks after Vacasa reported better-than-expected quarterly earnings and raised its full-year guidance. The news sent the stock up 25% on the day. So far this year, the company’s shares are down about 42%. Its market cap is $2.07 billion.
Greyber said a weakening economy is proving to be a tail wind for Vacasa’s property management business as more people look to list their homes and make some extra cash. Greyber also said homeowners who switch to Vacasa from another vacation rental manager earn an average of 20% more per year.
He comes into the job with a big endorsement. Greyber was a protege of Uber CEO Dara Khosrowshahi, who was the CEO of Expedia from 2005 to 2017.
“I very quickly saw Rob’s potential and ultimately promoted him to run Egencia, which was our corporate travel subsidiary,” Khosrowshahi told CNBC in a phone interview.
Under Greyber’s 11-year tenure at the helm of Egencia, Khosrowshahi said, the business “was all about bringing the power of technology to take corporate travel, which was still pretty high-touch and traditional, to move it forward to the same transformation that you saw online travel go through.”

Greyber, in turn, praised his former boss.
“I think one of the things he showed me as a leader as that you have to step back sometimes … the car goes where the eyes go, and even as you’re focused on the details and on the execution, making sure that you keep an eye on where you’re heading,” Greyber told CNBC in a phone interview.
He’ll have to apply that lesson as he takes the helm at Vacasa.
As a large property manager that offers services spanning from managing bookings to cleaning rentals, the ongoing labor shortage is widely seen as a challenge for the company.
When asked how he plans to navigate the tight jobs market, Greyber said, “it comes down to execution.”
TPG Pace Solutions took Vacasa public through a special purpose acquisition company in 2021. Since then, the company has had a volatile ride. While its shares are up 86% in the past month, the stock is still trading well below its IPO price at about $5 a share.
“There’s been pressure overall in the market over the last six to 12 months. My focus is going to be on the doing things that is going to create value in the long run,” Greyber said.

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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.65% from 5.45%.
“Last week’s purchase results varied, with conventional applications declining 2% and government applications increasing 4%, which is potentially a sign of more first-time homebuyer activity,” said Joel Kan, an MBA economist.

A real estate agent shows a home to a prospective buyer in Miami.
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Mortgage demand continues to weaken, still right around a 22-year low, but there was a sign in the weekly numbers that first-time buyers may be slowly returning.
Mortgage applications to purchase a home fell 1% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 21% lower than the same week one year ago. There was, however, a jump in demand for loans offering lower down payments.

“Last week’s purchase results varied, with conventional applications declining 2% and government applications increasing 4%, which is potentially a sign of more first-time homebuyer activity,” said Joel Kan, an MBA economist.
He also noted that the average purchase loan size continued to trend lower, as homebuying at the high end of the market weakens.
Mortgage rates increased for all loan types last week. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) rose to 5.65% from 5.45%, with points climbing to 0.68 from 0.57 (including the origination fee) for loans with a 20% down payment.
As a result of the sharp increase in rates, demand for loan refinances dropped 3% for the week and were 83% lower than the same week one year ago.
Borrowers also moved away from adjustable-rate loans, which are no longer offering the bargains they did just a few months ago.

“The spread between conforming fixed-rate loans and ARM loans narrowed to 84 basis points from over 100 basis points the prior week,” Kan said. “This movement made fixed rate loans relatively more attractive than ARMs, thereby reducing the ARM share further from highs seen earlier this year.”
Mortgage rates moved even higher to start this week, as the stock market sold off on renewed fears of a recession. Investors are waiting for what they expect to be hawkish sentiment from the Federal Reserve at a meeting later this week in Jackson Hole, Wyoming.

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