by Calculated Risk on 9/29/2010 07:34:00 AM

The MBA reports: Mortgage Refinance Applications Decrease Despite Decline in Rates in Latest MBA Weekly Survey

The Refinance Index decreased 1.6 percent from the previous week, which is the fourth straight weekly decrease. The seasonally adjusted Purchase Index increased 2.4 percent from one week earlier.
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The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.38 percent from 4.44 percent, with points increasing to 1.01 from 0.81 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The 30-year contract rate is a new low for this survey. The previous low was 4.43 percent for the week ending August 27, 2010.

Click on graph for larger image in new window.

This graph shows the MBA Purchase Index and four week moving average since 1990.

Purchase applications have increased slightly from the lows in July and are at about the same level is in 1996 or 1997. This suggests existing home sales (closed transactions) in September, October, and even November will not be much above the August sales rate.