Wednesday, October 12, 2011

MBA: Mortgage Purchase Application Index increases in Latest Survey

by Calculated Risk on 10/12/2011 07:34:00 AM

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

The Refinance Index increased 1.3 percent from the previous week. The seasonally adjusted Purchase Index increased 1.1 percent from one week earlier.
...
The average loan size of all loans for home purchase in the US was $210,863 in September 2011, down from $212,736 in August 2011. The average loan size for a refinance was $237,632, down from $241,323 in August.
...
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.25 percent from 4.18 percent ... The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.59 percent from 4.49 percent
The following graph shows the MBA Purchase Index and four week moving average since 1990.

MBA Purchase Index Click on graph for larger image in graph gallery.

This was a small increase in the purchase index. This index declined sharply in August suggesting fairly weak home sales in September in October, not counting cash buyers (other reports suggest a high number of cash buyers in September).