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US DATA: Refis Slide Further On Continued Mortgage Rates Climb

US DATA
USGlobalEM BulletFixed Income BulletsData BulletBulletMarketsEmerging Market NewsForeign Exchange BulletsRegionNorth America
  • MBA composite mortgage applications slid -10.8% last week (sa), a sixth consecutive weekly decline after broadly pausing the week prior when higher new purchase applications offset lower refis.
  • The story was much clearer cut this week, with refis tumbling -18.5% after -6.3% and new purchases -5.1% after +5.0%.
  • Refi applications have more than halved since late September for their lowest since May, unwinding a rebound that had been seen as mortgage holders had looked to benefit from lower rates.
  • Instead, 30Y conforming rates increased a further 8bp to 6.81% after the prior week’s 21bp jump, for a 67bp increase from late September levels. A further headwind is in store for applications with 10Y Treasury yields currently 18bps higher than the 4.28% averaged in the week to Nov 1.
  • Note that on regular-jumbo loan spreads, the previous week’s sizeable increase to -4bps looks to have been an anomaly with the spread widening back to a more typical -17bps. 
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  • MBA composite mortgage applications slid -10.8% last week (sa), a sixth consecutive weekly decline after broadly pausing the week prior when higher new purchase applications offset lower refis.
  • The story was much clearer cut this week, with refis tumbling -18.5% after -6.3% and new purchases -5.1% after +5.0%.
  • Refi applications have more than halved since late September for their lowest since May, unwinding a rebound that had been seen as mortgage holders had looked to benefit from lower rates.
  • Instead, 30Y conforming rates increased a further 8bp to 6.81% after the prior week’s 21bp jump, for a 67bp increase from late September levels. A further headwind is in store for applications with 10Y Treasury yields currently 18bps higher than the 4.28% averaged in the week to Nov 1.
  • Note that on regular-jumbo loan spreads, the previous week’s sizeable increase to -4bps looks to have been an anomaly with the spread widening back to a more typical -17bps.