Wednesday, October 20, 2010

MBA: Mortgage Purchase Activity Declines

by Bill McBride on 10/20/2010 07:39:00 AM

The MBA reports: Mortgage Applications Decrease in Latest MBA Weekly Survey

The Refinance Index decreased 11.2 percent from the previous week. The seasonally adjusted Purchase Index decreased 6.7 percent from one week earlier.
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The average contract interest rate for 30-year fixed-rate mortgages increased to 4.34 percent from 4.21 percent, with points decreasing to 0.81 from 1.02 (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.

The purchase index declined to near the lows of earlier this year, but this is just one week - the decline might be related to the Columbus Day holiday or to the recent slight change in FHA lending standards.

Note that the 30 year contract rate at 4.34% is just up from the record low of 4.21%.