The Mortgage Bankers Association (MBA) reported this morning that the Refinancing Index dropped 9% to 1981.5 (for the week ending August 29, 2003) from 2169 the week prior.
According to Citigroup Capital Markets research released this morning, this is the first time since July 2002 that the Index dropped to the sub-2000 level. Citigroup attributed the decrease to several factors. Aside from mortgage rates increasing slightly week-over-week, burnout is also an factor. Analysts said that the pool of borrowers willing to refinance at today’s relatively high rates (about 120 basis points more than those seen in mid-June) is shrinking. Citigroup also cited the impact of the Labor Day weekend, with many consumers beginning the long weekend early.