The MBA’s mortgage application index numbers are out this morning. Refis appear to have fallen off a cliff, down more than 6 percent versus one week ago, while purchase apps eked out slightly more than a 1 percent gain:

The Refinance Index decreased 6.3 percent to 1757.1 from 1874.6 the previous week and the seasonally adjusted Purchase Index increased 1.5 percent to 433.6 from 427 one week earlier. The seasonally adjusted Conventional Index decreased 1.5 percent to 920.6 from 934.8 the previous week, and the seasonally adjusted Government Index decreased 4.3 percent to 132.8 from 138.7 the previous week.

Not that this should be news: with mortgage rates going up, up, up and no interest rate relief in near sight, refinancing isn’t exactly an attractive option right now. That should slow prepayments, lessening portfolio run-off for bond investors – which gets me to thinking if this won’t at least help the secondary markets a bit. (After all, most of what I’ve seen suggests a steady to rising interest rate environment for the rest of 2007.) That is, of course, if a concomitant increase in default risk isn’t swamping the apparent decrease in prepayment risk.

Most Popular Articles

FHA loan limits increasing for almost all of U.S. in 2020

Thanks to increases in home prices in 2019, the Federal Housing Administration loan limit will increase for nearly all of the country in 2020.

Dec 05, 2019 By

Latest Articles

HousingWire is growing. Come join us

2019 has been a year of tremendous audience and product growth for HousingWire and we couldn’t be prouder. But we’re not ready to rest on our laurels. Far from it. In fact, 2020 promises to be an even bigger year for HousingWire.

Dec 06, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please