by Calculated Risk on 3/16/2016 07:00:00 AM

From the MBA: Refinance Applications Continue to Drop in Latest MBA Weekly Survey

Mortgage applications decreased 3.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 11, 2016.
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The Refinance Index decreased 6 percent from the previous week. The seasonally adjusted Purchase Index increased 0.3 percent to its highest level since January 2016. The unadjusted Purchase Index increased 1 percent compared with the previous week and was 33 percent higher than the same week one year ago.
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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.94 percent from 3.89 percent, with points increasing to 0.42 from 0.38 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added

Click on graph for larger image.


The first graph shows the refinance index since 1990.

Refinance activity was higher in 2015 than in 2014, but it was still the third lowest year since 2000.

Refinance activity has picked up recently as rates have declined.


The second graph shows the MBA mortgage purchase index.  

According to the MBA, the unadjusted purchase index is 33% higher than a year ago.