Mortgage Apps: Holding Recent Gains
June 19, 2019
Bottom Line: With 30-year fixed-rate mortgages holding near 4 1/8% for over two weeks now, mortgage applications have moved sharply higher. Gains have been led by refinancing applications, which were muted for several years as rates held north of 4.25%. But the recent dropped appears to have been enough incentive for many borrowers to refinance. Purchase applications have risen steadily since the Spring and still suggest housing activity has at least stabilized and is possibly turning modestly higher amid lower rates. The MBA Mortgage Applications Index FELL by 3.4% during the week ended June 14 to 511.8, still sharply above its 13 week average of 448.1 and 33.2% ABOVE its year ago level. The Purchase Index FELL by 3.5% to 268.6, slightly below its 13 week average of 268.7 but 3.5% ABOVE its year ago level. The Refinance Index FELL by 3.5% to 1,889. With this decline, refinancing activity is sharply above its 13 week average of 1,452 and 79.5% ABOVE its year ago level. Contract Mortgage Rates were MIXED with the 30-year fixed rate increasing by 2 bps to 4.14% and with the 15-year fixed rate declining by 3 bps to 3.50%.
Article by Contingent Macro Advisors