Mortgage Apps: Sharp Decline Amid Thanksgiving Holiday

Bottom Line:  As mortgage rates rose modestly, mortgage applications fell sharply, primarily due to the Thanksgiving holiday and difficult seasonal adjustments. Refinancing applications were down sharply but seasonally adjusted the purchase index was higher, confirming the broader trend we've seen over the last few months. While refi activity has fallen sharply, housing activity remains robust, with purchase activity trending higher again after a slow summer. In conjunction with other data points from the housing market, these data confirm housing activity remains robust and has rebounded after a modest correction in the late spring and early summer.The MBA Mortgage Application Index FELL sharply, DOWN -7.2% to 604.0, BELOW the 13-week average of 671.0 and -29.6% BELOW the year-ago level. Non-seasonally adjusted the index FELL sharply, DOWN -36.7%.The Purchase Index ROSE sharply, UP 5.1% to 311.0, ABOVE the 13-week average of 280.0 but -9.4% BELOW the year-ago level.
 
The Refinancing Index FELL sharply, DOWN -14.8% to 2304.0, BELOW the 13-week average of 2927.0 and -40.8% BELOW the year-ago level.
 
The effective (adjusted for points paid) 30-year mortgage rate ROSE sharply, UP 8bps to 3.43%, ABOVE the 13-week average of 3.27% and 14bps ABOVE the year-ago level.
 
Current coupon yields in the secondary market were down -2.0 bps last week , closing at 2.01%, and were little changed this week through Tuesday.