October 02, 2024 11:11 GMT
US DATA: Mortgage Applications Pause After Swift Increases
US DATA
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- MBA composite mortgage applications dipped -1.3% last week (sa) after two particularly strong refi-driven increases of 11% and 14.2%.
- Refis were -2.9% after 20.3% and 24.2% whilst new purchase applications increased for a sixth consecutive week with 0.7% after 1.4% (for a cumulative 14% increase).
- Refi applications have still increased more than 100% since July but are only to 63% of average 2019 levels, whereas new purchase applications have only increased 3.5% over the same period and are at 58% of 2019 levels.
- The 30Y conforming mortgage rate has levelled off at around 6.14% (a 1bp increase in the latest week after -2bps before that) for a 115bp decline since the April recent high of 7.29%.
- There remains some relative tightening though with the jumbo rate increasing 3bps after 6bps, pushing the conforming to jumbo spread lower still to -36bps (lowest since Jun 2020).
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