by Calculated Risk on 6/27/2012 07:05:00 AM
Wednesday, June 27, 2012
MBA: Mortgage Applications Decrease in Latest Weekly Survey
From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey
The Refinance Index decreased 8 percent from the previous week. The seasonally adjusted Purchase Index decreased 1 percent from one week earlier.Click on graph for larger image.
“Refinance volume fell last week due largely to a fall-off in refinance applications for government loans, which had more than doubled the prior week,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “The large swings in activity were due to the implementation of FHA’s new premiums on streamline refinances, and borrowers timing their applications to lower their premiums.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.88 percent from 3.87 percent, with points decreasing to 0.40 from 0.49 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The purchase index is mostly moving sideways.
Refinance activity has been increasing, and the decline this week followed the surge in FHA streamline refinancing last week. With mortgage rates near record lows, refinance activity will probably stay fairly strong.