Mortgage Apps: Rebound Mostly Due to Seasonal Adjustments

Bottom Line: With 30-year fixed-rate mortgages averaging nearly 4.25% refinancing activity remains muted. While the latest report shows a strong jump in activity, most of that is a rebound from the slow holiday week. Purchase application trends support what we see in other housing data -- slow and steady growth amid relatively tight supply. The MBA Mortgage Applications Index ROSE by 6.3% during the week ended July 14 to 416.7, slightly above its 13 week average of 416.4 but 32.2% BELOW its year ago level. The Purchase Index ROSE by 1.1% to 245.5, slightly below its 13 week average of 246.4 but 6.8% ABOVE its year ago level. The Refinance Index ROSE by 13.0% to 1,368. Despite this increase, refinancing activity is slightly above its 13 week average of 1,366 but 51.9% BELOW its year ago level. Contract Mortgage Rates were MIXED with the 30-year fixed rate was unchanged at 4.22% and with the 15-year fixed rate declining by 2 bps to 3.48%.