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Mortgage Apps: Refis Rate Responsive But Still Very Low

July 26, 2017

Bottom Line: With 30-year fixed-rate mortgages falling 5bps in the week ended July 21st, refinancing activity picked up modestly. While this shows there is some pent-up refinancing need at lower rates, the levels of refinancing activity remains very low historically. Purchase activity slipped slightly, and while not yet a turn in the steady growth trend, July has seen slower purchase activity. This trend bears watching as existing home sales have also lost upward momentum.

The MBA Mortgage Applications Index ROSE by 0.4% during the week ended July 21 to 418.5, slightly above its 13 week average of 417.3 but 23.3% BELOW its year ago level.

The Purchase Index FELL by 2.2% to 240.1, modestly below its 13 week average of 246.7 but 8.1% ABOVE its year ago level.

The Refinance Index ROSE by 3.4% to 1,414. Despite this increase, refinancing activity is modestly above its 13 week average of 1,370 but 41.4% BELOW its year ago level.

Contract Mortgage Rates FELL with the 30-year fixed rate declining by 5 bps to 4.17% and with the 15-year fixed rate declining by 3 bps to 3.45%.

Article by Contingent Macro Advisors