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Mortgage Apps: Sharp Fall as 30y Rate Nearly 4.25%

November 30, 2016
Bottom Line: Mortgage applications fell sharply last week as the 30-year fixed-rate mortgage hit 4.23% on average, according to realtors. The latest week saw signifigant seasonal adjustments due to the Thanksgiving Holiday. That said, the 30-year rate is now up nearly 50bps in less than a month. That has impacted refinancing activity strongly with the refi index now down 30% in the month. Purchase applications are still modestly higher as would-be buyers have looked to lock-in still historically low mortgage rates.

The MBA Mortgage Applications Index FELL by 9.4% during the week ended November 25 to 417.2, sharply below its 13 week average of 501.4 and 0.4% BELOW its year ago level.

The Purchase Index FELL by 0.2% to 233.6, modestly above its 13 week average of 219.4 and 2.4% ABOVE its year ago level. The level of purchase activity had stayed quite low after the crisis until 2015 when it started to rise. But that trend has lost momentum since mid-2016.

The Refinance Index FELL by 16.2% to 1,470. With this decline, refinancing activity is sharply below its 13 week average of 2,120 and 3.1% BELOW its year ago level.

Contract Mortgage Rates ROSE with the 30-year fixed rate increasing by 7 bps to 4.23% and with the 15-year fixed rate increasing by 13 bps to 3.48%.