by Bill McBride on 4/15/2015 07:01:00 AM
Wednesday, April 15, 2015
Mortgage applications decreased 2.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 10, 2015. ...Click on graph for larger image.
The Refinance Index decreased 2 percent from the previous week. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. ... The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 7 percent higher than the same week one year ago.
“Purchase mortgage application volume last week increased to its highest level since July 2013, spurred on by still low mortgage rates and strengthening housing markets,” said Mike Fratantoni, MBA’s Chief Economist. “Purchase volume has increased for three straight weeks now on a seasonally adjusted basis.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.87 percent from 3.86 percent, with points increasing to 0.38 from 0.27 (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 a little 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 7% higher than a year ago.
Posted by Bill McBride on 4/15/2015 07:01:00 AM