by Bill McBride on 3/12/2014 07:00:00 AM
Wednesday, March 12, 2014
Mortgage applications decreased 2.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 7, 2014. ...Click on graph for larger image.
The Refinance Index decreased 3 percent from the previous week. The seasonally adjusted Purchase Index decreased 1 percent from one week earlier. ...
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.52 percent from 4.47 percent, with points increasing to 0.29 from 0.28 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.41 percent from 4.37 percent, with points unchanged at 0.20 (including the origination fee) for 80 percent LTV loans.
The first graph shows the refinance index.
The refinance index is down 70% from the levels in May 2013.
With the mortgage rate increases, refinance activity will be significantly lower in 2014 than in 2013.
The second graph shows the MBA mortgage purchase index.
The 4-week average of the purchase index is now down about 18% from a year ago.
The purchase index is probably understating purchase activity because small lenders tend to focus on purchases, and those small lenders are underrepresented in the purchase index - but this is still very weak.
Note: Jumbo rates are still below conforming rates.
Posted by Bill McBride on 3/12/2014 07:00:00 AM