by Calculated Risk on 3/23/2011 07:43:00 AM

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

The Refinance Index increased 2.7 percent from the previous week. The seasonally adjusted Purchase Index increased 2.7 percent from one week earlier.
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The average contract interest rate for 30-year fixed-rate mortgages increased to 4.80 percent from 4.79 percent, with points decreasing to 0.96 from 1.07 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

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 still at 1997 levels, and even with the large percentage of cash buyers recently, this still suggests fairly weak home sales through April. Note: Refinance activity has picked up a little with lower mortgage rates.