by Bill McBride on 2/03/2016 07:00:00 AM
Wednesday, February 03, 2016
Mortgage applications decreased 2.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 29, 2016. The previous week’s results included an adjustment for the Martin Luther King holidayClick on graph for larger image.
The Refinance Index increased 0.3 percent from the previous week to its highest level since October 2015. The seasonally adjusted Purchase Index decreased 7 percent from one week earlier. The unadjusted Purchase Index increased 11 percent compared with the previous week and was 17 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 its lowest level since October 2015, 3.97 percent, from 4.02 percent, with points increasing to 0.41 from 0.40 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. This is the fourth straight weekly decrease for this rate.
The first graph shows the refinance index since 1990.
Refinance activity was higher in 2015 than in 2014, but it was still the third lowest year since 2000.
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 17% higher than a year ago.
Posted by Bill McBride on 2/03/2016 07:00:00 AM