by Bill McBride on 10/16/2013 07:01:00 AM
Wednesday, October 16, 2013
Mortgage applications increased 0.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 11, 2013. ...Click on graph for larger image.
The Refinance Index increased 3 percent from the previous week. The seasonally adjusted Purchase Index decreased 5 percent from one week earlier. ...
“The government shutdown had a notable impact on the mortgage market last week. Purchase applications for government programs dropped by more than 7 percent over the week to their lowest level since December 2007, and the government share of purchase applications dropped to its lowest level in almost three years,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Conventional purchase applications dropped as well, but not to the same extent, falling almost 4 percent for the week.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.46 percent from 4.42 percent, with points decreasing to 0.31 from 0.44 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index.
The refinance index is up over the last five weeks as rates have declined from the August levels.
However the index is still down 60% from the levels in early May.
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 now down 2% from a year ago.
Posted by Bill McBride on 10/16/2013 07:01:00 AM