by Calculated Risk on 12/07/2005 12:03:00 PM

Following the negative predictions from Dr. Leamer and the Anderson forecast, the MBA reports that mortgage applications rebounded and are still near record territory (seasonally adjusted).

UPDATE: Long term MBA graph courtesy of ILD:


Click HERE for larger image.

The Mortgage Bankers Association (MBA) reports: Mortgage Application Volume Rebounds

The Market Composite Index — a measure of mortgage loan application volume was 656.7 -- an increase of 5.2 percent on a seasonally adjusted basis from 624.1, one week earlier. On an unadjusted basis, the Index increased 46.8 percent compared with the previous week [Thanksgiving holiday] but was down 6.1 percent compared with the same week one year earlier.

The seasonally-adjusted Purchase Index increased by 4.0 percent to 495.1 from 476.2 the previous week whereas the Refinance Index increased by 7.0 percent to 1596.4 from 1484.3 one week earlier.

Click on graph for larger image.

The graph shows overall and purchase activity since June. Overall activity has fallen significantly due to the drop in refis. Purchase activity is steady.

Mortgage rates increased last week:

The average contract interest rate for 30-year fixed-rate mortgages increased to 6.32 percent from 6.20 percent on week earlier...

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.84 percent from 5.72 percent...

Overall this report shows purchase activity is steady at a very high level.