Rates may continue to be on the lower end of the record highs, but mortgage applications slipped last week. According to the Mortgage Bankers Association, apps were down .8 percent following three weeks on the up and up.
The MBA notes that this week’s results include an adjustment for the observance of the Thanksgiving holiday.
The seasonally adjusted Purchase Index increased 4 percent from one week earlier. The unadjusted Purchase Index decreased 31 percent compared with the previous week and was 41 percent lower than the same week one year ago.
“Mortgage rates declined again last week, following bond yields lower. The 30-year fixed mortgage rate decreased to 6.49 percent and has now fallen 57 basis points over the past four weeks. Additionally, mortgage rates for most other loan types declined,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The economy here and abroad is weakening, which should lead to slower inflation and allow the Fed to slow the pace of rate hikes. Purchase activity increased slightly after adjusting for the Thanksgiving holiday, but the decline in rates was still not enough to bring back refinance activity. Refinance applications fell another 13 percent, and the refinance share of applications was at 26 percent. Both measures were at their lowest levels since 2000.”
The Refinance Index decreased 13 percent from the previous week and was 86 percent lower than the same week one year ago.
The refinance share of mortgage activity decreased to 26.1 percent of total applications from 28.4 percent the previous week. The adjustable-rate mortgage share of activity increased to 9 percent of total applications.