Mortgage Apps: Holding Below 4 1/8% Key For Refis

Bottom Line: While applications for refinancing fell modestly last week, there were heavy seasonal adjustments due to the 4th of July holiday. With 30-year fixed-rate mortgage holding below 4 1/8% for most borrowers, the trend in refinancing activity is continuing to improve. The refi index is holding near a two-year record high, nearly double its year ago level when mortgage rates were averaging nearly 4 7/8%. Purchase activity, which started to improve late last year, has been slowly and steadily improving all year. Overall mortgage applications continue to trend higher, suggesting housing activity is likely finding a bottom and improving modestly after 2018's retrenchment. The MBA Mortgage Applications Index FELL by 2.4% during the week ended July 5 to 505.8, sharply above its 13 week average of 458.8 and 35.7% ABOVE its year ago level. The Purchase Index ROSE by 2.3% to 275.6, modestly above its 13 week average of 267.8 and 5.4% ABOVE its year ago level. The Refinance Index FELL by 6.5% to 1,800. With this decline, refinancing activity is sharply above its 13 week average of 1,530 and 87.8% ABOVE its year ago level. Contract Mortgage Rates were MIXED with the 30-year fixed rate declining by 3 bps to 4.04% and with the 15-year fixed rate was unchanged at 3.42%.