Latest data from the Mortgage Bankers Association for the week ending 18 October 2019
- Prior +0.5%
- Purchase index 241.7 vs 250.6 prior
- Market index 515.9 vs 585.5 prior
- Refinancing index 2,076.9 vs 2,505.8 prior
- 30-year mortgage rate 4.02% vs 3.92% prior
Headline measures the change in number of applications for mortgages backed by the MBA during the week. The dramatic drop in the headline largely stems from a sharp fall in refinancing activity during the week.
I would argue that it is a bit of a normalisation after the sharp rise in refinancing activity towards the tail end of last month. As such, there isn't anything rotten in the report here but merely just a bit of a correction in my view.
Here is the gauge of the refinancing index over the past few weeks:
