by Bill McBride on 8/22/2012 07:01:00 AM
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Wednesday, August 22, 2012
From the MBA: Refinance Applications Decline as Rates Increase
The Refinance Index decreased 9 percent from the previous week to the lowest level since early July. The seasonally adjusted Purchase Index increased 0.9 percent from one week earlier.Click on graph for larger image.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.86 percent from 3.76 percent, with points decreasing to 0.42 from 0.47 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the MBA mortgage purchase index. The purchase index has been mostly moving sideways over the last two years.
Note: Yesterday Zillow reported "The 30-year fixed mortgage rate on Zillow(R) Mortgage Marketplace is currently 3.5 percent, up eight basis points from 3.42 percent at this same time last week."
The second graph shows the refinance index.
The refinance activity has declined for three straight weeks as mortgage rates have moved higher. This is still a fairly high level of activity.
Posted by Bill McBride on 8/22/2012 07:01:00 AM