In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Tuesday, December 24, 2013

MBA: Mortgage Applications Decrease in Latest Weekly Survey, Refinance Activity Lowest since Nov 2008

by Calculated Risk on 12/24/2013 09:01:00 AM

From the MBA: Mortgage Applications Fall During Holiday-Shortened Week

Mortgage applications decreased 6.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 20, 2013. ...

The Refinance Index decreased 8 percent from the previous week. The seasonally adjusted Purchase Index decreased 4 percent from one week earlier....
"Purchase volume was weak too, continuing to run more than ten percent below last year's pace." [said Mike Fratantoni, MBA’s Vice President of Research and Economics].

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.63 percent, the highest level since September 2013, from 4.61 percent, with points unchanged at 0.24 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
Mortgage Purchase Index Click on graph for larger image.

The first graph shows the refinance index.

The refinance index is down sharply - and down 72% from the levels in early May - and at the lowest level since November 2008

Mortgage Refinance Index The second graph shows the MBA mortgage purchase index.  

The 4-week average of the purchase index is now down about 11% from a year ago.