Mortgage Apps: Purchase Applications Slowing Amid Low Refis
August 2, 2017
Bottom Line: Purchase applications have slowed since mid-June and hit their lowest levels since March. While refinancing applications have remained very low, purchase applications had been holding up overall mortgage activity. With difficult seasonal adjustments, these data don't yet confirm a turn lower in the stable trend. But considering modestly lower existing home sales in the early summer, this trend bears watching.
The MBA Mortgage Applications Index FELL by 2.8% during the week ended July 28 to 406.6, modestly below its 13 week average of 417.4 and 22.8% BELOW its year ago level.
The Purchase Index FELL by 2.0% to 235.4, modestly below its 13 week average of 245.9 but 8.5% ABOVE its year ago level.
The Refinance Index FELL by 3.8% to 1,361. With this decline, refinancing activity is slightly below its 13 week average of 1,375 and 41.2% BELOW its year ago level.
Contract Mortgage Rates were UNCHANGED with the 30-year fixed rate unchanged at 4.17% and the 15-year fixed rate at 3.45%.
Article by Contingent Macro Advisors