MBA Survey: Rates Decline Slightly, Mortgage Applications Increase

Bottom Line: Mortgage activity rose moderately in the latest week. Mortgage rates were down slightly on the week and were below 4% for the 11th consecutive week. Home buying increased moderately while refinancing activity rose for the 7th time in the last 13 weeks. On a trend basis mortgage applications are improving, especially when looking at 13-week averages for this volatile series. The MBA Mortgage Applications Index ROSE by 10.0% during the week ended April 8 to 520.2, modestly above its 13 week average of 487.0 and 16.1% ABOVE its year ago level. On a longer term basis, mortgage applications rose from early 2011 until May 2013 when the trend topped out and began a steady retreat. However, the declining trend bottomed in December 2014, turned sharply higher in early 2015 but then the trend shifted lower and is now up again. The Purchase Index ROSE by 8.4% to 241.9, moderately above its 13 week average of 225.0 and 23.7% ABOVE its year ago level. The level of purchase activity had stayed quite low, amid moderate volatility, since May 2010 but is now turning moderately higher. The Refinance Index ROSE by 11.3% to 2,122. Despite this increase, refinancing activity is modestly above its 13 week average of 1,991 and 11.2% ABOVE its year ago level. Contract Mortgage Rates were MIXED with the 30-year fixed rate dipping by 4 bps to 3.82% and with the 15-year fixed rate was unchanged at 3.10%.