Wednesday, October 09, 2013

MBA: Mortgage Applications Increase in Latest Weekly Survey, Mortgage Rates Lowest since mid-June

by Bill McBride on 10/09/2013 07:01:00 AM

From the MBA: Mortgage Refinance Applications Increase in Latest MBA Weekly Survey

Mortgage applications increased 1.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 4, 2013. ...

The Refinance Index increased 3 percent from the previous week and is at its highest level since the week ending August 9, 2013. The seasonally adjusted Purchase Index decreased 1 percent from one week earlier. ... For the second consecutive week, the unadjusted Purchase Index was lower compared to the same week one year ago.
...
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.42 percent, the lowest rate since mid-June, from 4.49 percent, with points increasing to 0.44 from 0.34 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
Mortgage Purchase Index Click on graph for larger image.


The first graph shows the refinance index.

The refinance index is up over the last four weeks as rates have declined.

However the index is still down 61% from the levels in early May.


Mortgage Refinance Index The second graph shows the MBA mortgage purchase index.  

The 4-week average of the purchase index has fallen since early May, and the 4-week average of the purchase index is only up slightly from a year ago.