Mortgage rates tick back up a bit this week. I was expecting a slight drop in rates due to the 10Y yield falling. However, it seems that in the past 2 days the yield did recover, and I’m sure with margins so thin, lenders can’t afford to give back gains.
On the mortgage activity front, applications decline again. However, the decline was largely due to another significant drop in refinancing activity.
U.S. mortgage applications fell for a third straight week, dragged down by a decline in home refinancings to a 16-month low even as interest rates dipped, an industry trade group figures showed on Wednesday.
The group’s seasonally adjusted index of refinancing applications dropped 6.3 percent to 1,484.3 compared with 1,584.1 in the previous week. The index fell for a sixth straight week, and volume was at its lowest level since the week ended June 25, 2004 when the index reached 1,386.9.
The purchase index however, did increase a bit.
The MBA’s seasonally adjusted purchase mortgage index rose 0.8 percent to 476.2 from the previous week’s 472.3. The index is considered a timely gauge on U.S. home sales.