Mortgage Apps: Refis remain muted
March 29, 2017
Bottom Line: Rates fell 13bps to 4.33% on average for 30-year fixed-rate mortgages last week. Despite, this there applications for refis fell nearly 3% and purchase applications rose just slightly. The trend in place for over four months now remains - refi applications remain near record lows, heavily impacted by the move up in rates, while purchase application growth remains steady, in a modest uptrend despite higher rates. The MBA Mortgage Applications Index FELL by 0.8% during the week ended March 24 to 403.6, modestly above its 13 week average of 390.2 but 12.4% BELOW its year ago level. The Purchase Index ROSE by 1.2% to 238.1, modestly above its 13 week average of 232.7 and 4.2% ABOVE its year ago level. The level of purchase activity had stayed quite low after the crisis until 2015 when it started to rise. But that trend has lost momentum since mid-2016. The Refinance Index FELL by 2.9% to 1,327. With this decline, refinancing activity is modestly above its 13 week average of 1,276 but 25.6% BELOW its year ago level. Contract Mortgage Rates FELL with the 30-year fixed rate declining by 13 bps to 4.33% and with the 15-year fixed rate declining by 11 bps to 3.57%.
Article by Contingent Macro Advisors