by Bill McBride on 12/19/2012 07:01:00 AM
Wednesday, December 19, 2012
The Refinance Index decreased 14 percent from the previous week to the lowest level since week ending November 2, 2012. The seasonally adjusted Purchase Index decreased 5 percent from one week earlier. ...Click on graph for larger image.
“Despite the Federal Reserve’s announcement last week that it would purchase an additional $45 billion in Treasury securities per month as part of its continuing quantitative easing effort, rates increased in the second half of the week,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “As a result, refinance applications dropped sharply to the lowest level in over a month.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.50 percent from 3.47 percent, with points increasing to 0.44 from 0.36 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
This graph shows the MBA mortgage purchase index.
Although the purchase index declined 5% this week, the 4-week average is up about 25% from the post-bubble low.
Posted by Bill McBride on 12/19/2012 07:01:00 AM