by Bill McBride on 2/08/2017 07:00:00 AM
Wednesday, February 08, 2017
Mortgage applications increased 2.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 3, 2017.Click on graph for larger image.
... The Refinance Index increased 2 percent from the previous week. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 9 percent compared with the previous week and was 4 percent higher than the same week one year ago.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,000 or less) decreased to 4.35 percent from 4.39 percent, with points remaining unchanged at 0.34 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index since 1990.
It would take a substantial decrease in mortgage rates to see a significant increase in refinance activity - although we might see more cash-out refis.
The second graph shows the MBA mortgage purchase index.
Even with the recent increase in mortgage rates, purchase activity is still holding up.
However refinance activity has declined significantly.
Posted by Bill McBride on 2/08/2017 07:00:00 AM