Mortgage Apps: Purchase Apps Steady
September 27, 2017
Bottom Line: Mortgage applications fell modestly in the week ended September 22nd. The purchase index increased modestly while the refinancing index fell more. The 4-week average for the purchase index is just 1% below the 13-week average, and the trend is still very modestly lower for now. The refinancing index has slowly ticked modestly higher in the last few months, despite little change in rates. To some extent this may be due to a "media effect" that sparked some homeowners to act as the financial news narrative shifted to focus on Fed rate hikes and the potential for higher rates as the Fed tapered its balance sheet.
The MBA Mortgage Applications Index FELL by 0.5% during the week ended September 22 to 415.6, slightly below its 13 week average of 418.0 and 21.2% BELOW its year ago level.
The Purchase Index ROSE by 2.8% to 231.0, modestly below its 13 week average of 236.4 but 3.7% ABOVE its year ago level.
The Refinance Index FELL by 3.5% to 1,446. With this decline, refinancing activity is slightly above its 13 week average of 1,431 but 36.4% BELOW its year ago level.
Contract Mortgage Rates ROSE with the 30-year fixed rate increasing by 7 bps to 4.11% and with the 15-year fixed rate increasing by 3 bps to 3.38%.
Article by Contingent Macro Advisors