Mortgage Apps: Steady Rise in Purchase Apps

Bottom Line: The average 30-year mortgage rate dropped to 4.28%, down 6bps on the week and driving purchase applications higher again as applications for refinancing held steady. The resilience of mortgage application volume for purchases remains notable and confirms sales data that show continued steady housing sales amid tight supply. The MBA Mortgage Applications Index ROSE by 1.5% during the week ended April 7 to 402.9, slightly above its 13 week average of 395.0 but 22.5% BELOW its year ago level. The Purchase Index ROSE by 2.9% to 246.7, modestly above its 13 week average of 234.0 and 2.0% ABOVE its year ago level. The level of purchase activity had stayed quite low after the crisis until 2015 when it started to rise. That trend lost momentum in mid-2016 but has now started to rise again, despite higher mortgage rates. The Refinance Index ROSE by 0.0% to 1,272. Despite this increase, refinancing activity is slightly below its 13 week average of 1,294 and 40.0% BELOW its year ago level. Contract Mortgage Rates FELL with the 30-year fixed rate declining by 6 bps to 4.28% and with the 15-year fixed rate declining by 6 bps to 3.51%.