Thursday , February 21 2019
Home / Calculated Risk / MBA: Mortgage Applications Increase in Latest Weekly Survey, Refinance Activity Lowest since 2000

MBA: Mortgage Applications Increase in Latest Weekly Survey, Refinance Activity Lowest since 2000

Summary:
From the MBA: Mortgage Applications Increase in Latest MBA Weekly SurveyMortgage applications increased 2.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 6, 2018. This week’s results included an adjustment for the Fourth of July holiday.... The Refinance Index decreased 4 percent from the previous week to its lowest level since December 2000. The seasonally adjusted Purchase Index increased 7 percent from one week earlier. The unadjusted Purchase Index decreased 15 percent compared with the previous week and was 8 percent higher than the same week one year ago. ...The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances (3,100 or less)

Topics:
Bill McBride considers the following as important:

This could be interesting, too:

Tyler Durden writes Russiagate In Flames: No Evidence Of Collusion, New Findings Challenge DNC Hack Narrative

Tyler Durden writes Jefferies Is Shocked By How Clueless The Fed Turned Out To Be

Troy writes The stock market’s momentum is extremely strong. What’s next for stocks

Tyler Durden writes “The Berkshire Trade”: How Deutsche Bank Conspired To Conceal A .6 Billion Loss

From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey
Mortgage applications increased 2.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 6, 2018. This week’s results included an adjustment for the Fourth of July holiday.

... The Refinance Index decreased 4 percent from the previous week to its lowest level since December 2000. The seasonally adjusted Purchase Index increased 7 percent from one week earlier. The unadjusted Purchase Index decreased 15 percent compared with the previous week and was 8 percent higher than the same week one year ago. ...

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) decreased to 4.76 percent from 4.79 percent, with points increasing to 0.43 from 0.41 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
MBA: Mortgage Applications Increase in Latest Weekly Survey, Refinance Activity Lowest since 2000 Click on graph for larger image.


The first graph shows the refinance index since 1990.

Refinance activity will not pick up significantly unless mortgage rates fall 50 bps or more from the recent level.

MBA: Mortgage Applications Increase in Latest Weekly Survey, Refinance Activity Lowest since 2000The second graph shows the MBA mortgage purchase index

According to the MBA, purchase activity is up 8% year-over-year.
Bill McBride
A full time blogger, Mr. McBride retired as a senior executive from a small public company in the '90s. Mr. McBride holds an MBA from the University of California, Irvine, and has a background in management, finance and economics.

Leave a Reply

Your email address will not be published. Required fields are marked *