Wednesday, March 03, 2010

MBA: Mortgage Purchase Applications increase slightly

by Bill McBride on 3/03/2010 07:21:00 AM

The MBA reports: Mortgage Refinance Applications Increase in Latest MBA Weekly Survey

The Market Composite Index ... increased 14.6 percent on a seasonally adjusted basis from one week earlier. ...

“Mortgage applications rebounded last week, particularly refis, as rates dropped back below 5 percent,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Purchase activity remains subdued, with application volumes remaining within the narrow range seen in the last few months.”

The Refinance Index increased 17.2 percent from the previous week and the seasonally adjusted Purchase Index increased 9.0 percent from one week earlier. ...

The refinance share of mortgage activity increased to 69.1 percent of total applications from 68.1 percent the previous week. ...

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.95 percent from 5.03 percent, with points decreasing to 0.99 from 1.34 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
MBA Purchase Index Click on graph for larger image in new window.

This graph shows the MBA Purchase Index and four week moving average since 1990.

Even with the increase in purchase applications this week, the level is back to the levels of 1997.

Also, with mortgage rates back below 5% again, refinance activity increased last week.