Mortgage Apps: 30-year Rates Fall to 3.82% But Momentum Wanes

Bottom Line: Mortgage rates fell further in the first week of September, averaging 3.82% on 30-year fixed-rates in the holiday shortened week. Despite this, refinancing activity barely moved higher. While the increase in applications since July has been swift, there has been a clear slowing in the pace of refinancing applications in the last few weeks. Purchase applications have actually turned modestly lower. Difficult seasonal adjustments in the last few weeks make it difficult to draw any clear conclusions on the trend -- but this certainly bears watching in the coming weeks. The MBA Mortgage Applications Index ROSE by 2.0% during the week ended September 6 to 569.8, modestly above its 13 week average of 536.8 and 68.9% ABOVE its year ago level. The Purchase Index ROSE by 4.5% to 253.5, slightly below its 13 week average of 256.4 but 8.6% ABOVE its year ago level. The Refinance Index ROSE by 0.4% to 2,378. Despite this increase, refinancing activity is sharply above its 13 week average of 2,136 and 168.9% ABOVE its year ago level. Contract Mortgage Rates FELL with the 30-year fixed rate declining by 5 bps to 3.82% and with the 15-year fixed rate declining by 1 bp to 3.28%.