Mortgage Apps: Modest Decline After Surprise Gains

Bottom Line:  Mortgage applications fell after several weeks of surprisingly stronger activity. The average 30-year fixed-rate mortgage held steady in the 6 1/2 to 6 5/8% range. The level of mortgage applications remains historically low, but we continue to see signs of stabilization in the housing market. Despite multiple bank failures, there was still a clear underlying demand for housing in March. And that appears likely to stabilize the residential market as it rebalances to a new equilibrium after a record move in mortgage rates last year.The MBA Mortgage Application Index FELL -4.1% to 218.0, BELOW the 13-week average of 218.0 and -45.3% BELOW the year-ago level. Non-seasonally adjusted the index FELL slightly , DOWN -3.7%.The Purchase Index FELL -3.5% to 167.0, BELOW the 13-week average of 173.0 and -35.5% BELOW the year-ago level.The Refinancing Index FELL -5.4% to 477.0, ABOVE the 13-week average of 445.0 but -59.1% BELOW the year-ago level. The effective (adjusted for points paid) 30-year mortgage rate FELL -6bps to 6.57%, BELOW the 13-week average of 6.65% but 30bps ABOVE the year-ago level. Current coupon yields in the secondary market were up 13.0 bps last week , closing at 5.05%, and were down -12.0 bps this week through Tuesday.