The attached file contains this articles commentary as well as tables and charts of the data.
Mortgage Apps: Respond to Shocking Rate Rise
November 16, 2016
Bottom Line: Already starting to slow with the modest rise in mortgage rates over the last two months, mortgage applications fell sharply last week as mortgage rates jumped higher by nearly 20bps. The 30-year fixed-rate rose to 3.95% as of Friday's reporting period and is even higher this week. Both refinancing and purchase application responded to this sharp rise with purhcases dropping 6% and refinancing applications dropping nearly 11%.
The MBA Mortgage Applications Index FELL by 9.2% during the week ended November 11 to 436.3, sharply below its 13 week average of 516.6 but still 0.6% ABOVE its year ago level.
The Purchase Index FELL by 6.2% to 197.0, moderately below its 13 week average of 216.4 and 7.4% BELOW 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 10.9% to 1,810. With this decline, refinancing activity is sharply below its 13 week average of 2,241 but 6.8% ABOVE its year ago level.
Contract Mortgage Rates ROSE with the 30-year fixed rate increasing by 18 bps to 3.95% and with the 15-year fixed rate increasing by 12 bps to 3.15%.