Mortgage Apps: Rates Edge Higher, Apps Fall

Bottom Line:  The average 30-year fixed-rate mortgage edged higher last week, up 6.74%, as spreads to Treasuries in the secondary market remained near the widest levels of the year. Applications fell for both purchased and refis. Still, we continue to see tenuous signs of bottoming in both new purchase and refinancing applications. Holding below 7% on the average 30-year fixed-rate mortgage will likely prove critical, and bears close watching in coming weeks.The MBA Mortgage Application Index FELL -5.7% to 215.0, ABOVE the 13-week average of 214.0 but -32.7% BELOW the year-ago level. Non-seasonally adjusted the index FELL -5.6%. The Purchase Index FELL -4.8% to 165.0, ABOVE the 13-week average of 165.0 but -26.5% BELOW the year-ago level. The Refinancing Index FELL -7.7% to 468.0, ABOVE the 13-week average of 462.0 but -43.4% BELOW the year-ago level. The effective (adjusted for points paid) 30-year mortgage rate ROSE 8bps to 6.74%, ABOVE the 13-week average of 6.73% and 18bps ABOVE the year-ago level. Current coupon yields in the secondary market were up 11.0 bps last week , closing at 5.2%, and were up 7.0 bps this week through Tuesday.