Mortgage Apps: Some Stability In Purchase Apps

Bottom Line: Unchanged last week, the MBA mortgage application index is down about 7% in the last four weeks. The 30-year mortgage rate is little changed in the last several quarters but still about 25bps above its year ago level. Refinancing remains quite muted. Purchase applications had been trending higher until this summer and have since turned lower. However, the 4-week moving average of the purchase index is on top of the 13-week average now, indicating some stability -- but this trend bears watching. The MBA Mortgage Applications Index was nearly unchanged during the week ended November 3 to 389.7, modestly below its 13 week average of 413.7 and 18.9% BELOW its year ago level. The Purchase Index ROSE by 0.5% to 227.2, modestly below its 13 week average of 231.9 but 8.2% ABOVE its year ago level. The Refinance Index FELL by 0.5% to 1,291. With this decline, refinancing activity is moderately below its 13 week average of 1,427 and 36.5% BELOW its year ago level. Contract Mortgage Rates FELL with the 30-year fixed rate declining by 4 bps to 4.18% and with the 15-year fixed rate declining by 1 bp to 3.51%.