Wednesday, March 02, 2011

MBA: Mortgage Purchase Application activity decreases

by Bill McBride on 3/02/2011 07:38:00 AM

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

The Refinance Index decreased 6.5 percent from the previous week. The seasonally adjusted Purchase Index decreased 6.1 percent from one week earlier.
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The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.84 percent from 5.00 percent, with points increasing to 1.30 from 0.96 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
MBA Purchase Index Click on graph for larger image in graph gallery.

This graph shows the MBA Purchase Index and four week moving average since 1990.

The four-week moving average of the purchase index is at 1997 levels - however there are have been a large percentage of cash buyers recently and cash buyers do not apply for a mortgage - still this suggests weak home sales through the first few months of 2011.