by Bill McBride on 12/23/2015 07:01:00 AM
Wednesday, December 23, 2015
Mortgage applications increased 7.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 18, 2015.Click on graph for larger image.
The Refinance Index increased 11 percent from the previous week. The seasonally adjusted Purchase Index increased 4 percent from one week earlier. The unadjusted Purchase Index increased 2 percent compared with the previous week and was 37 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) increased to 4.16 percent from 4.14 percent, with points increasing to 0.47 from 0.45 (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 2015 was low too. Refinance activity will probably stay low in 2016.
The second graph shows the MBA mortgage purchase index.
According to the MBA, the unadjusted purchase index is 37% higher than a year ago.
Posted by Bill McBride on 12/23/2015 07:01:00 AM