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Mortgage Apps: Slide Continues As Higher Rates Hit Purchase Apps

June 13, 2018
Bottom Line: Mortgage activity has slumped even further as 30-year fixed-rate mortgages held over 4 3/4% for the last month. While refinancing activity has been very low and trending even lower, the purchase activity index has now also turned lower after rising from March until late April. Overall, the longer-term trend in purchase activity remains higher since 2015 -- however, purchase applications are increasingly correlated with interest rates, and this will bear watching if 30-year no point mortgage rates push towards a 5% handle.

The MBA Mortgage Applications Index FELL by 1.5% during the week ended June 8 to 365.3, modestly below its 13 week average of 381.7 and 17.5% BELOW its year ago level.

The Purchase Index FELL by 1.5% to 249.0, slightly below its 13 week average of 253.2 and 2.2% BELOW its year ago level.

The Refinance Index FELL by 1.5% to 992. With this decline, refinancing activity is moderately below its 13 week average of 1,083 and 33.6% BELOW its year ago level.

Contract Mortgage Rates ROSE with the 30-year fixed rate increasing by 8 bps to 4.83% and with the 15-year fixed rate increasing by 2 bps to 4.23%.