Mortgage Apps: 30-year Rates Dip Back Below 4%
November 6, 2019
Bottom Line: The 30-year fixed-rate mortgage fell slightly last week, averaging just below the critical 4% rate. Applications for refinancing ticked slightly higher, while purchase applications fell slightly. Overall, there was little impact on the trend with 4% still proving an important trigger for refinancing. On a trend basis refinancing activity is still up sharply since the broad decline in rates started at the end of 2018. Purchase applications, though, are mixed, despite the low overall rate level, and have lost any of the upward momentum we had seen earlier this year.
The MBA Mortgage Applications Index FELL by 0.1% during the week ended November 1 to 518.7, moderately below its 13 week average of 561.3 but 58.5% ABOVE its year ago level.
The Purchase Index FELL by 2.5% to 241.0, modestly below its 13 week average of 251.0 but 6.6% ABOVE its year ago level.
The Refinance Index ROSE by 1.8% to 2,103. Despite this increase, refinancing activity is moderately below its 13 week average of 2,336 but 144.0% ABOVE its year ago level.
Contract Mortgage Rates FELL with the 30-year fixed rate declining by 7 bps to 3.98% and with the 15-year fixed rate declining by 2 bps to 3.38%.
Article by Contingent Macro Advisors