Mortgage Apps: Substantial Volatility But Trend Lower

December 6, 2017
Bottom Line: Mortgage applications have been quite volatile, mostly due to seasonal adjustments around the Thanksgiving Holiday. While we should expect more volatility over the course of the next 4 weeks, trends reveal low levels of refinancing activity with the 30-year mortgage rate near its year ago levels in the 4.15 - 4.25% range. Purchase applications have been in a modest downtrend since early summer. But longer-term the trend is still mixed to modestly higher, so this will warrant particularly close attention in early 2018 . The MBA Mortgage Applications Index ROSE by 4.7% during the week ended December 1 to 408.3, slightly below its 13 week average of 408.9 and 1.4% BELOW its year ago level. The Purchase Index ROSE by 2.4% to 250.6, modestly above its 13 week average of 235.6 and 6.9% ABOVE its year ago level. The Refinance Index ROSE by 9.0% to 1,314. Despite this increase, refinancing activity is modestly below its 13 week average of 1,377 and 10.0% BELOW its year ago level. Contract Mortgage Rates were MIXED with the 30-year fixed rate declining by 1 bp to 4.19% and with the 15-year fixed rate increasing by 2 bps to 3.59%.