Mortgage Apps: Further Drop As Refis Slip

Bottom Line: Mortgage applications hit another new low last week, as the average 30-year fixed-rate mortgage hovered around 7.50% adjusted for points paid. Purchase volumes were a touch higher but still near historic lows. Refis, meanwhile, had been holding well of the lows seen at the end of last year. But they slid sharply last week and were trending quickly lower. Overall, application volumes continue to suggest that mortgage rates are jeopardizing the recovery in housing activity.

The MBA Mortgage Application Index FELL slightly, DOWN -0.8% to 182.0, BELOW the 13-week average of 199.0 and -28.5% BELOW the year-ago level. Non-seasonally adjusted the index FELL -12.0%. The Purchase Index ROSE slightly, UP 1.3% to 144.0, BELOW the 13-week average of 155.0 and -27.5% BELOW the year-ago level. The Refinancing Index FELL -5.4% to 367.0, BELOW the 13-week average of 416.0 and -31.1% BELOW the year-ago level. The effective (adjusted for points paid) 30-year mortgage rate ROSE 7bps to 7.48%, ABOVE the 13-week average of 7.23% and 20bps ABOVE the year-ago level. Current coupon yields in the secondary market were up 11.0 bps last week, closing at 6.0%, and were up 4.0 bps this week through Tuesday.