Housing recovery stalled with the rise in rates. LL trades at 41 FPE. It's a flooring retailer. @0 FPE makes sense. Shorting here with zero fear. They regurgitated the same song at the Goldman Conference. Stocks way ahead of itself.
The number of mortgage applications filed in the U.S. last week fell 13.5% from the prior week on a seasonally adjusted basis as interest rates increased, the Mortgage Bankers Association said Wednesday.
On an unadjusted basis, MBA reported the market composite index declined 23%. The refinance index slipped 28% from a week earlier, while the seasonally adjusted purchase index slid 2.7%.
Higher rates had curbed demand for buy new homes and made refinancing less attractive.
The share of applications filled to refinance existing mortgages fell to 57% from 61% a week earlier. In the latest week, adjusted-rate mortgages, or ARMs, represented 7.1% of total applications.
The average rate on 30-year fixed-rate mortgages with conforming loan balances rose to 4.8% from the prior week's 4.73%. Rates on similar mortgages with jumbo-loan balances climbed to 4.84% from 4.71% a week earlier. The average rate on 30-year fixed-rate mortgages backed by the Federal Housing Administration increased to 4.56% from last week's 4.48%.
The average rate for 15-year fixed-rate mortgages grew to 3.83% from 3.75% last week. The 5/1 ARM average rose to 3.59% from 3.49% a week earlier.