Mortgage Apps: 7+ Year Highs In Rates Hit Purchase Activity
November 14, 2018
Bottom Line: 30-year mortgage rates eclipsed 2011 highs last week, hitting 5.17%, according to the average of realtor surveys. Rising 20bps in the last six weeks, mortgage rates are clearly hindering purchase activity. Purchase activity had been showing signs of stabilization late in the summer selling season, but is now trending lower again. Refinancing activity remains almost non-existent relative to history with so much of the mortgages outstanding at deep discounts to current rates. The MBA Mortgage Applications Index FELL by 3.2% during the week ended November 9 to 316.7, modestly below its 13 week average of 338.7 and 21.2% BELOW its year ago level. The Purchase Index FELL by 2.3% to 220.8, modestly below its 13 week average of 231.1 and 3.2% BELOW its year ago level. The Refinance Index FELL by 4.3% to 825. With this decline, refinancing activity is moderately below its 13 week average of 909 and 39.9% BELOW its year ago level. Contract Mortgage Rates ROSE with the 30-year fixed rate increasing by 2 bps to 5.17% and with the 15-year fixed rate increasing by 2 bps to 4.57%.
Article by Contingent Macro Advisors