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Wednesday, June 10, 2009

MBA: Mortgage Rates Increase, Refinance Applications Decline

by Calculated Risk on 6/10/2009 08:37:00 AM

The MBA reports:

The Market Composite Index, a measure of mortgage loan application volume, was 611.0, a decrease of 7.2 percent on a seasonally adjusted basis from 658.7 one week earlier.
...
The Refinance Index decreased 11.8 percent to 2605.7 from 2953.6 the previous week and the seasonally adjusted Purchase Index increased 1.1 percent to 270.7 from 267.7 one week earlier.
...
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.57 percent from 5.25 percent ...
emphasis added
The Purchase Index is now at the level of the late '90s.

30-year fixed mortgage rates were at 4.81% two weeks ago, and are now at 5.57%. With the 10 year yielding 3.9%, mortgage rates will probably rise again this week.

MBA Purchase Index Click on graph for larger image in new window.

This graph shows the MBA Purchase Index and four week moving average since 2002.

Although we can't compare directly to earlier periods because of the changes in the index, this shows no pick up in overall sales activity.