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Mortgage Apps: Even Lower

October 12, 2022
Bottom Line:  Mortgage rates averaged 7.09% in the first week of the 4th Quarter, pushing mortgage applications to a record low. Applications for purchases remained just a touch above 2015's lows, but refis slowed to another historic low. Secondary mortgage market yields were higher through Tuesday trading, suggesting no reprieve for those seeking mortgage loans. At this point, the trend in mortgage applications will take years to reverse as mortgage borrowers see few reasons to move and lose below-market rates and homebuyers slowly reset their expectations for affordability.
The MBA Mortgage Application Index FELL -2.0% to 214.0, BELOW the 13-week average of 260.0 and -68.8% BELOW the year-ago level. Non-seasonally adjusted the index FELL slightly , DOWN -1.8%.
The Purchase Index FELL -2.1% to 170.0, BELOW the 13-week average of 198.0 and -39.1% BELOW the year-ago level.
The Refinancing Index FELL slightly, DOWN -1.8% to 423.0, BELOW the 13-week average of 573.0 and -86.0% BELOW the year-ago level.
The effective (adjusted for points paid) 30-year mortgage rate ROSE 6bps to 7.09%, ABOVE the 13-week average of 6.2% and 116bps ABOVE the year-ago level.
Current coupon yields in the secondary market were up 5.0 bps last week , closing at 5.72%, and were up 10.0 bps this week through Tuesday.
Article by Contingent Macro