The Mortgage Bankers Association (MBA) reported this morning that for the week ending Sept.19, mortgage applications remained level even with the drop in rates seen over the week. The MBA said that the Refinancing Index remained almost the same at 2429.7 compared to last week’s showing of 2438.5.

Citigroup Global Markets noted that the outcome of the Refinancing Index could be attributed to week-over-week volatility in a report released this morning. Citi researchers added that mortgage rates declined by 10 basis points to 15 basis points. The drop brought rates back to where they were at the end of July. However, despite the recent drop, mortgage rates remain considerably higher than June lows.

At the start of this week, primary market mortgage rates rose by about 10 basis points. As of  yesterday, major lenders’ no-point rates varied from 5.875% and 6.25%. These results were based on Citigroup’s survey of lenders’ Websites. Both Citgroup and Countrywide Securities expect Thursday's Freddie Mac Survey Rate  decrease to roughly 5.95%. from 6.01% the previous week.

Meanwhile, the Purchase Index also dipped 7% to 402.1.The MBA also reported that as a percentage of total applications, refinancings increased to 51.9% compared to 49.9% the previous week. The ARM share also showed a slight increase to 22.7% from 22.4% the previous week.

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