by Bill McBride on 7/27/2016 07:01:00 AM
Wednesday, July 27, 2016
Mortgage applications decreased 11.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 22, 2016.Click on graph for larger image.
... The Refinance Index decreased 15 percent from the previous week. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier to the lowest level since February 2016. The unadjusted Purchase Index decreased 3 percent compared with the previous week and was 12 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 3.69 percent from 3.65 percent, with points unchanged at 0.36 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index since 1990.
Refinance activity has increased this year since rates have declined.
However it would take another significant move down in mortgage rates to see a large increase in refinance activity.
The second graph shows the MBA mortgage purchase index.
The purchase index is "12 percent higher than the same week one year ago".
Posted by Bill McBride on 7/27/2016 07:01:00 AM