Mortgage Apps: Volatility Mostly Due To Seasonal Adjustments
October 25, 2017
Bottom Line: Seasonal adjustments around the Columbus Day holiday added to the headline volatility of the mortgage applications index in the last two weeks. Looking through the volatility, there has been very little change in trend. After falling throughout the summer the 4-week average of purchase applications has been sideways since early September. Refinancings have risen just slightly, but not enough to suggest any significant rebound from the very low levels that have persisted for nearly a year now. The MBA Mortgage Applications Index FELL by 4.6% during the week ended October 20 to 400.3, modestly below its 13 week average of 417.2 and 18.6% BELOW its year ago level. The Purchase Index FELL by 6.1% to 228.0, modestly below its 13 week average of 233.3 but 9.7% ABOVE its year ago level. The Refinance Index FELL by 3.0% to 1,358. With this decline, refinancing activity is modestly below its 13 week average of 1,443 and 36.0% BELOW its year ago level. Contract Mortgage Rates ROSE with the 30-year fixed rate increasing by 4 bps to 4.18% and with the 15-year fixed rate increasing by 3 bps to 3.48%.
Article by Contingent Macro Advisors