Wednesday, February 29, 2012

Misc: Purchase Mortgage Applications increase, ECB LTRO €530bn

by Bill McBride on 2/29/2012 07:38:00 AM

From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey

The Refinance Index decreased 2.2 percent from the previous week. The seasonally adjusted Purchase Index increased 8.2 percent from one week earlier.
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"Mortgage rates remained near survey lows last week, but refinance volume fell slightly," said Michael Fratantoni, Vice President of Research and Economics at the Mortgage Bankers Association. Fratantoni continued, "According to survey participants, more than 20 percent of refinance applications were for HARP loans. The HARP share of total refinance applications has increased over the past month. Purchase application volume increased over the week, but remains within the narrow and anemic range of activity we have seen since the expiration of the homebuyer tax credit in May 2010."
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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 4.07 percent from 4.09 percent
From the Financial Times Alphaville on the ECB's Long-Term Refinancing Operation (LTRO): LTRO.2 €530bn
That’s €530bn with 800 bidders — 277 more than participated last time, when the uptake was €489bn.