MBA Mortgage Applications 1-3-13

TRADEX GLOBAL INTERNAL COMMENTARY

Mortgage applications fell for the third straight week!  MBA said that its index, which includes both new mortgages and re-financings, fell 10.4% in the week ending December 28th.  The index of re-financings also fell a whopping 10.4% (we have been predicting pre-pays would be cresting) and we believe that refi’s will fall off more as we move into 2013.  The percent of mortgage applications that were for refinancings held steady at 82% of applications, but we believe that will also come down soon.  30-year mortgage rates averaged 3.52% in the week, up 1 basis point.  We monitor this closely and believe that this is positive news for the IO’s in our Liquid Real Estate Portfolio.  Keep nimble – Michael Beattie

EXTERNAL RESEARCH COMMENTARY

Applications for U.S. home mortgages fell last week for the third consecutive week as refinancings fell to the lowest level since last April, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 10.4 percent in the week ended Dec. 28. The MBA's seasonally adjusted index of refinancing applications also fell 10.4 percent, while the gauge of loan requests for home purchases, a leading indicator of home sales, fell 10.5 percent. Both indexes dipped for a third straight week. The refinance share of total mortgage activity stayed at 82 percent of applications. Fixed 30-year mortgage rates averaged 3.52 percent in the week, up 1 basis point from 3.51 percent the week before. The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA. The release covered two weeks of data because of the holidays. 

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