by Bill McBride on 9/16/2015 07:04:00 AM
Wednesday, September 16, 2015
Mortgage applications decreased 7.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 11, 2015. The week’s results included an adjustment for the Labor Day holiday. ...Click on graph for larger image.
The Refinance Index decreased 9 percent from the previous week. The seasonally adjusted Purchase Index decreased 4 percent from one week earlier. The unadjusted Purchase Index decreased 16 percent compared with the previous week and was 5 percent higher than the same week one year ago. The Labor Day holiday shifted from the first week in September last year to the second week this year.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.09 percent from 4.10 percent, with points increasing to 0.42 from 0.39 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index.
Refinance activity remains low.
2014 was the lowest year for refinance activity since year 2000, and refinance activity will probably stay low for the rest of 2015 (after the increase earlier this year).
The second graph shows the MBA mortgage purchase index.
According to the MBA, the unadjusted purchase index is 5% higher than a year ago - but that is probably too low due to the shift in timing of Labor Day. Last week, the MBA reported the index was up 41% YoY. Next week will be a better YoY comparison.
Posted by Bill McBride on 9/16/2015 07:04:00 AM