by Bill McBride on 7/08/2015 07:00:00 AM
Wednesday, July 08, 2015
Note: Results for holiday weeks can be very volatile.
From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey
Mortgage applications increased 4.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 3, 2015. This week’s results included an adjustment for the July 4th holiday. ...Click on graph for larger image.
The Refinance Index increased 3 percent from the previous week. The seasonally adjusted Purchase Index increased 7 percent from one week earlier. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 32 percent higher than the same week one year ago.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.23 percent from 4.26 percent, with points increasing to 0.37 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index.
With higher rates, refinance activity is very low.
2014 was the lowest year for refinance activity since year 2000, and refinance activity will probably stay low for the rest of 2015.
The second graph shows the MBA mortgage purchase index.
According to the MBA, the unadjusted purchase index is 32% higher than a year ago (probably distorted by holiday week).
Posted by Bill McBride on 7/08/2015 07:00:00 AM