by Bill McBride on 2/25/2015 07:00:00 AM
Wednesday, February 25, 2015
MBA: Purchase Mortgage Applications Increase, Refinance Applications Decrease in Latest MBA Weekly Survey
Mortgage applications decreased 3.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 20, 2015. This week’s results include an adjustment to account for the Presidents’ Day holiday. ...Click on graph for larger image.
The Refinance Index decreased 8 percent from the previous week. The seasonally adjusted Purchase Index increased 5 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 3.99 percent from 3.93 percent, with points decreasing to 0.33 from 0.35 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index.
2014 was the lowest year for refinance activity since year 2000.
2015 will probably see more refinance activity than in 2014, but not a large refinance boom.
The second graph shows the MBA mortgage purchase index.
According to the MBA, the unadjusted purchase index is down 2% from a year ago.
Posted by Bill McBride on 2/25/2015 07:00:00 AM