by Bill McBride on 3/08/2017 07:00:00 AM
Wednesday, March 08, 2017
Mortgage applications increased 3.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 3, 2017. The previous week’s results included an adjustment for the President’s Day holiday.Click on graph for larger image.
... The Refinance Index increased 5 percent from the previous week to the highest level since December 2016. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 15 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 ($424,100 or less) increased to 4.36 percent from 4.30 percent, with points increasing to 0.44 from 0.38 (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.
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 3/08/2017 07:00:00 AM