by Bill McBride on 6/29/2011 07:26:00 AM
Wednesday, June 29, 2011
The MBA reports: Mortgage Applications Decrease in Latest MBA Weekly Survey
The Refinance Index decreased 2.6 percent from the previous week. The seasonally adjusted Purchase Index decreased 3.0 percent from one week earlier.The following graph shows the MBA Purchase Index and four week moving average since 1990.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.46 percent from 4.57 percent, with points increasing to 1.19 from 0.91 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the lowest 30-year rate recorded in the survey since the middle of November 2010.
Click on graph for larger image in graph gallery.
The four week average of purchase activity is at about 1997 levels - and mostly moving sideways. Of course there is a very high percentage of cash buyers right now, but this suggests weak existing home sales through the next month or two.
Posted by Bill McBride on 6/29/2011 07:26:00 AM