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Wednesday, June 11, 2014

MBA:"Strong Growth in Mortgage Application Volume Following Memorial Day Holiday"

by Calculated Risk on 6/11/2014 07:00:00 AM

From the MBA: Strong Growth in Mortgage Application Volume Following Memorial Day Holiday

Mortgage applications increased 10.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 6, 2014. The previous week’s results included an adjustment for the Memorial Day holiday. ...

The Refinance Index increased 11 percent from the previous week. The seasonally adjusted Purchase Index increased 9 percent from one week earlier. ...
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.34 percent from 4.26 percent, with points increasing to 0.16 from 0.13 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
Mortgage Refinance Index Click on graph for larger image.

The first graph shows the refinance index.

The refinance index is down 71% from the levels in May 2013.

As expected, refinance activity is very low this year.

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

According to the MBA, the unadjusted purchase index is down about 13% from a year ago.