Mortgage Apps Reverse Gains From Last Week

Despite lower rates, total mortgage applications decreased 2.5% from one week earlier, according to MBA’s Weekly Mortgage Applications Survey (MBA)

  • REFINANCE: Refi’s continued their decline with a 1% decline from last week and an 18% drop from the same week one year ago.
  • PURCHASE: The unadjusted purchase index dropped 4% from the previous week but was 34% higher than the same week one year ago.

RATE DROP: The Mortgage Bankers Association did report that rates have fallen with the 30-year fixed rate down 3 bips to 3.17%.

Even with a rate drop, the market is still being controlled by prices and supply. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The purchase market’s recent slide comes despite a strengthening economy and labor market. Activity is still above year-ago levels, but accelerating home-price growth and low inventory has led to a decline in purchase applications in four of the last five weeks.”