Title Searches Fall

The AFS Title Search Index fell 2.9% to a holiday-adjusted 199.6 for the week ended July 3 from 205.4 for the previous week, according to Advance Factor Service.Unadjusted, the index would have been 159.7. [Click here to see the chart.] The index averaged 208.2 over the previous four weeks, down 2.9 points from the prior week's four-week moving average. A year ago, the index stood at 143.6, 72.0% of the current level. "The lack of upward momentum in the AFSTSX suggests that an equilibrium has been reached between prevailing rates and mortgage activity," said AFS manager Paul Descloux. "However, title activity is still robust enough to maintain currently elevated prepayment speeds. An acceleration in title activity and therefore prepayments could occur if the present bond rally can take mortgage rates to new and significant 1998 lows."