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Wednesday, February 02, 2011

MBA: Mortgage Purchase Application activity increases

by Calculated Risk on 2/02/2011 07:26:00 AM

The MBA reports: Mortgage Applications Increase in Latest MBA Weekly Survey

The Refinance Index increased 11.7 percent from the previous week. The seasonally adjusted Purchase Index increased 9.5 percent from one week earlier.
"Applications increased this week relative to the holiday week [Martin Luther King, Jr Day]," said Michael Fratantoni, MBA's Vice President of Research and Economics. "Looking over the past two weeks, purchase applications are flat, and refinance applications are down about five percent."
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.81 percent from 4.80 percent, with points decreasing to 1.02 from 1.19 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
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 1990.

The four-week moving average of the purchase index suggests weak existing home sales through the first few months of 2011.