by Bill McBride on 3/15/2017 07:00:00 AM
Wednesday, March 15, 2017
Mortgage applications increased 3.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 10, 2017.Click on graph for larger image.
... The Refinance Index increased 4 percent from the previous week. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 3 percent compared with the previous week and was 6 percent higher than the same week one year ago.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to its highest level since April 2014, 4.46 percent, from 4.36 percent, with points decreasing to 0.37 from 0.44 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index since 1990.
Refinance is up over the last three weeks, but it seems like activity will decline again as interest rates increase.
The second graph shows the MBA mortgage purchase index.
Even with the increase in mortgage rates over the last few months, purchase activity is still holding up.
However refinance activity has declined significantly since rates increased.
Posted by Bill McBride on 3/15/2017 07:00:00 AM