by Bill McBride on 8/05/2015 07:00:00 AM
Wednesday, August 05, 2015
Mortgage applications increased 4.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 31, 2015. ...Click on graph for larger image.
The Refinance Index increased 6 percent from the previous week. The seasonally adjusted Purchase Index increased 3 percent from one week earlier. The unadjusted Purchase Index increased 3 percent compared with the previous week and was 23 percent higher than the same week one year ago.
“Despite recent concerns about the economy, both purchase and refinance applications increased strongly in response to lower interest rates last week,” said Lynn Fisher, MBA’s Vice President of Research and Economics. “Refinance activity was the highest since May when rates were last at this level. The increase in purchase activity was also notable for this time of year, up 23 percent relative to a year ago.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.13 percent, its lowest level since May 2015, from 4.17 percent, with points decreasing to 0.34 from 0.36 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index.
Even with the increase in activity, 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 23% higher than a year ago.
Posted by Bill McBride on 8/05/2015 07:00:00 AM