by Bill McBride on 12/24/2014 07:01:00 AM
Wednesday, December 24, 2014
Mortgage applications increased 0.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 19, 2014. ...Click on graph for larger image.
The Refinance Index increased 1 percent from the previous week. The seasonally adjusted Purchase Index increased 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) decreased to 4.02 percent, the lowest level since May 2013, from 4.06 percent, with points increasing to 0.26 from 0.21 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index.
The refinance index is down 72% from the levels in May 2013.
Even with the general decline in mortgage rates, refinance activity is very low this year and 2014 will be the lowest since year 2000. Rates would have to decline significantly for there to be a large refinance boom.
The second graph shows the MBA mortgage purchase index.
According to the MBA, the unadjusted purchase index is down 1% from a year ago.
Posted by Bill McBride on 12/24/2014 07:01:00 AM