by Calculated Risk on 4/13/2011 07:20:00 AM

The MBA reports: Applications Decrease in Latest MBA Weekly Survey

The Refinance Index decreased 7.7 percent to its lowest level since February 11, 2011. The seasonally adjusted Purchase Index decreased 4.7 percent from one week earlier.
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The average contract interest rate for 30-year fixed-rate mortgages increased for the fourth consecutive week to 4.98 percent from 4.93 percent, with points increasing to 0.93 from 0.69 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the highest average contract rate reported since February 18, 2011.

Click on graph for larger image in graph gallery.

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

As expected, purchase activity declined last week after the slight boost the previous week as some buyers tried to beat the increase in FHA insurance premiums. This suggests weak home sales through May (not counting cash buyers).