Mortgage Apps: Strong Start to New Year

Bottom Line: Mortgage applications rose sharply in the first full week of the new year . While seasonal adjustments were significant following the holidays, the non-seasonally adjusted figures compared to the same time last year were also strong. On a trend basis purchase applications are trending slowly higher, while refinancing applications have been moving lower since peaking this summer, even as mortgage rates have stayed near the lows of the last year. The MBA Mortgage Applications Index ROSE by 30.2% during the week ended January 10 to 613.6, sharply above its 13 week average of 520.9 and 49.0% ABOVE its year ago level. The Purchase Index ROSE by 15.5% to 303.9, sharply above its 13 week average of 261.1 and 9.1% ABOVE its year ago level. The Refinance Index ROSE by 42.7% to 2,445. Despite this increase, refinancing activity is sharply above its 13 week average of 2,036 and 108.5% ABOVE its year ago level. Contract Mortgage Rates FELL with the 30-year fixed rate declining by 4 bps to 3.87% and with the 15-year fixed rate declining by 5 bps to 3.30%.