Mortgage applications decreased 10.1 percent from one week earlier, according to information from the Mortgage Bankers Association’s (MBA) Weekly Home Loan Applications Survey for the week ending September 20, 2019.
… The Refinance Index reduced 15 percent from the previous week and was 104 percent higher than the same week one year earlier. The seasonally changed Purchase Index decreased 3 percent from one week earlier The unadjusted Purchase Index decreased 4 percent compared to the previous week and was 9 percent higher than the exact same week one year ago
” U.S. Treasury yields trended downward over the course of recently, as the Federal Reserve meeting highlighted the elevated unpredictability in the economic outlook. However, regardless of falling yields, mortgage rates ticked up again and have risen 20 basis points over the previous 2 weeks,” stated Joel Kan, MBA’s Partner Vice President of Economic and Market Forecasting. “The boost in rates caused fewer refinances, and activity has now dropped 17 percent over the last two weeks.”
Added Kan, “Purchase applications likewise reduced, likely related to the two-week dive in rates, however still remained 9 percent greater than last year. The current data on increased existing-home sales and new residential construction indicate the hidden strength in the purchase market this fall.”
The typical contract interest rate for 30- year fixed-rate mortgages with adhering loan balances ($484,350 or less) increased to 4.02 percent from 4.01 percent, with points increasing to 0.38 from 0.37(consisting of the origination cost) for 80 percent loan-to-value ratio (LTV) loans.
The first graph reveals the re-finance index considering that 1990.
With lower rates, we saw a sharp increase in re-finance activity. Now activity has actually declined as rates have increased.
According to the MBA, purchase activity is up 9%year-over-year.