by Calculated Risk on 7/03/2019 07:00:00 AM
Wednesday, July 03, 2019
Mortgage applications decreased 0.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 28, 2019.Click on graph for larger image.
... The Refinance Index decreased 1 percent from the previous week. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index increased 1 percent compared with the previous week and was 10 percent higher than the same week one year ago.
“Purchase applications picked up slightly last week, as conventional and government activity were each up around 1 percent. Furthermore, in continuation of the gradual growth trend seen throughout the first half of 2019, purchase activity was almost 10 percent higher than a year ago,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “A still-strong job market, improving affordability and lower mortgage rates continue to support growth.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 4.07 percent from 4.06 percent, with points increasing to 0.36 from 0.35 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index since 1990.
Mortgage rates have declined from close to 5% late last year to around 4% now.
Just about anyone who bought or refinanced over the last year or so can refinance now. But it would take another significant decline in rates for a further large increase in refinance activity.
The second graph shows the MBA mortgage purchase index
According to the MBA, purchase activity is up 10% year-over-year.
Posted by Calculated Risk on 7/03/2019 07:00:00 AM