U.S. MBA mortgage market index rose 3.3%
U.S. MBA mortgage market index rose 3.3% in data released earlier, in addition to a 1.4% bounce in the purchase index and a 5.1% jump in the refinancing index for the week ended September 1. The rebounds were supported by the 5 basis point drop in the 30-year fixed mortgage rate to 4.06% -- the lowest level since the election (again) -- after Hurricane Harvey, budget skirmishes, N. Korea brinkmanship and August payrolls miss conspired to weigh on market rates. This has put the Fed in a bind in terms of further rate hikes in 2017, though it is expected to continue to forge ahead with launching the balance sheet wind down. For more detail on the housing sector, which is now facing the strongest Atlantic hurricane (Irma) ever recorded aimed squarely at Florida, hot on the heels of Harvey's direct hit on Houston, see our existing home sales, housing starts and new home sales.