Mortgage Apps: Uptick Due to Seasonal Adjustments
October 18, 2017
Bottom Line: The reported level of mortgage applications rose in the week ended October 13th -- but that was entirely due to seasonal adjustments for the Columbus Day holiday. While still a national bank holiday, fewer states and companies recognize the holiday, so we suspect the seasonal adjustment is a bit too large. The four-week average is still below the 13-week average, suggesting the trend is towards modestly slower mortgage activity.
The MBA Mortgage Applications Index ROSE by 3.6% during the week ended October 13 to 419.7, slightly above its 13 week average of 418.6 but 18.2% BELOW its year ago level.
The Purchase Index ROSE by 4.2% to 242.9, modestly above its 13 week average of 234.3 and 8.9% ABOVE its year ago level.
The Refinance Index ROSE by 3.0% to 1,400. Despite this increase, refinancing activity is modestly below its 13 week average of 1,447 and 35.6% BELOW its year ago level.
Contract Mortgage Rates were MIXED with the 30-year fixed rate declining by 2 bps to 4.14% and with the 15-year fixed rate increasing by 1 bp to 3.45%.
Article by Contingent Macro Advisors