The attached file contains this articles commentary as well as tables and charts of the data.
Mortgage Apps: Plunge Continued as Rates Breach 5.5%
April 27, 2022
Bottom Line: Applications for purchases and refinancing fell again last week as the effective 30-year fixed-rate mortgage (adjusted for points) rose to over 5.5%. The purchase index hit its lowest level since the weeks immediately following the initial shutdowns for Covid. The refi index fell further, near its lowest levels in 15+ years. On the plus side, secondary mortgage market rates edged lower this week, down about 15bps. That said realized interest rate volatility remains very high, and mortgage bankers will have a hard time passing on the full moves of a rate move to borrowers until volatility subsides. Overall, the trend in mortgage applications is lower as housing activity slowly cools in response to higher rates.The MBA Mortgage Application Index FELL sharply , DOWN -8.3% to 343.0, BELOW the 13-week average of 465.0 and -51.4% BELOW the year-ago level. Non-seasonally adjusted the index FELL -7.4%.The Purchase Index FELL sharply , DOWN -7.6% to 235.0, BELOW the 13-week average of 265.0 and -16.6% BELOW the year-ago level.The Refinancing Index FELL -9.0% to 931.0, BELOW the 13-week average of 1580.0 and -70.8% BELOW the year-ago level.The effective (adjusted for points paid) 30-year mortgage rate ROSE sharply , UP 17bps to 5.56%, ABOVE the 13-week average of 4.62% and 71bps ABOVE the year-ago level.
Article by Contingent Macro Advisors