by Bill McBride on 9/14/2016 07:00:00 AM
Wednesday, September 14, 2016
Mortgage applications increased 4.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 9, 2016. This week’s results included an adjustment for the Labor Day holiday.Click on graph for larger image.
... The Refinance Index increased 2 percent from the previous week. The seasonally adjusted Purchase Index increased 9 percent from one week earlier. The unadjusted Purchase Index decreased 15 percent compared with the previous week and was 8 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 3.68 percent from 3.67 percent, with points increasing to 0.37 from 0.33 (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.
Based on the increase in mortgage rates over the last few days, I'd expect refinance activity to decline soon.
The second graph shows the MBA mortgage purchase index.
The purchase index is "8 percent higher than the same week one year ago".
Posted by Bill McBride on 9/14/2016 07:00:00 AM