Weekly Purchase Applications Report Appears To Be Negative (Wild Ride)

Data that are weekly are often subject to volatility, wild volatility in the case of the purchase index over the last two weeks which fell 10.0 percent in the November 21 week after surging 12.0 percent in the prior week. The trend, based on the 4-week average, is again clearly negative, at minus 10.0 percent year-on-year.

Refinancing demand, which surged in October on low mortgage rates, fell back for a 5th straight week, down 4.0 percent in the latest data. Mortgage rates were mostly lower in the week with the average 30-year conforming loan ($417,000 or less) down 3 basis points to 4.15 percent.