Mortgage Apps: Purchase Applications Rose for 2nd Week
April 29, 2020
Bottom Line: Purchase activity turned higher for the second week in a row after hitting 5-year lows. While the level of applications remained low, there has clearly been a return of some activity in late April. The average 30-year fixed-rate mortgage held below 3.5% for the fifth straight week, but refinancing applications fell for the second week in a row, suggesting the potential that the highest-rated credit borrowers with an incentive to refinance have already done so. The MBA Mortgage Applications Index FELL by 3.3% during the week ended April 24 to 743.4, modestly below its 13 week average of 792.7 but 82.6% ABOVE its year-ago level. The Purchase Index ROSE by 11.6% to 208.0, sharply below its 13 week average of 239.9 and 19.8% BELOW its year-ago level. The Refinance Index FELL by 7.3% to 3,901. With this decline, refinancing activity is modestly below its 13 week average of 4,030 but 217.6% ABOVE its year-ago level. Contract Mortgage Rates FELL with the 30-year fixed rate declining by 2 bps to 3.43% and the 15-year fixed rate declining by 5 bps to 2.98%.
Article by Contingent Macro Advisors