Mortgage Apps: Purchase Applications Continue To Move Higher

Bottom Line: With the heaviest of seasonal adjustments behind us, the trend in mortgage purchase applications has been rising steadily in early 2018. In the week ended February 2nd, the 4-week average eclipsed levels not seen since June of last year. While refinancing remains extremely muted with 30-year fixed mortgage rates at 4.50%, purchase application data suggests buying is steady and even picking up a bit despite higher rates. The MBA Mortgage Applications Index ROSE by 0.7% during the week ended February 2 to 416.3, modestly above its 13 week average of 396.7 and 5.8% ABOVE its year ago level. The Purchase Index FELL by 0.0% to 255.4, modestly above its 13 week average of 244.7 and 9.3% ABOVE its year ago level. The Refinance Index ROSE by 0.9% to 1,299. Despite this increase, refinancing activity is modestly above its 13 week average of 1,267 and 1.8% ABOVE its year ago level. Contract Mortgage Rates ROSE with the 30-year fixed rate increasing by 9 bps to 4.50% and with the 15-year fixed rate increasing by 7 bps to 3.92%.