Mortgage Apps: Slight Rebound

Bottom Line:  Applications for purchases rebounded slightly as mortgage rates stabilized. While the trend in purchase applications remains firmly to the downside, the level of applications relative to periods of similarly elevated mortgage rates remains impressive. Refinancing, of course, remains near record lows with most outstanding mortgages carrying rates well below last week's effective average 30-year fixed rate of 5.55% (adjusted for points paid). Overall, the trend in mortgage applications is lower as housing activity slowly cools in response to higher rates. But we should note that, so far, the cooling in purchase activity has been particularly modest, confirming that demand remains strong even as affordability falls.The MBA Mortgage Application Index ROSE 2.5% to 352.0, BELOW the 13-week average of 444.0 and -49.8% BELOW the year-ago level. Non-seasonally adjusted the index ROSE slightly , UP 3.4%.
 
The Purchase Index ROSE 4.1% to 244.0, BELOW the 13-week average of 260.0 and -11.0% BELOW the year-ago level.
 
The Refinancing Index was nearly unchanged, UP 0.2% to 932.0, BELOW the 13-week average of 1471.0, and -70.8% BELOW the year-ago level.
 
The effective (adjusted for points paid) 30-year mortgage rate FELL slightly, DOWN -1bps to 5.55%, ABOVE the 13-week average of 4.75% and 69bps ABOVE the year-ago level.Current coupon yields in the secondary market were little changed last week, closing at 4.15%, and were up 9.0 bps this week through Tuesday.