…but it is what it is

Mortgage Refinancing Applications Tank 11.11% From Previous Week As Fed-or Mortis Sets In

By Anthony B. Sanders

Fed Futures Forecast 3 Rate Increase This Year

Yes, The Fed’s version of Rigor Mortis (aka, Fed-or Mortis) is setting in.

Mortgage applications increased 2.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 23, 2018. This week’s results include an adjustment for the Washington’s Birthday (Presidents’ Day) holiday.

The seasonally adjusted Purchase Index increased 6 percent from one week earlier. The unadjusted Purchase Index decreased 1 percent compared with the previous week and was 3 percent higher than the same week one year ago. The Refinance Index decreased 11 percent from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) remained unchanged from last week at 4.64 percent, with points increasing to 0.63 from 0.61 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.

Despite Chairman Powell hinting at four rate increases in 2018, Fed funds future prices are currently forecast to be only three.

Time to sip some tequila and see how this plays out.