MBA: Mortgage Applications Increase Sharply in Latest Weekly Survey

From the MBA: Mortgage Applications Increase as Rates Drop in Latest MBA Weekly Survey

The Refinance Index increased 15 percent from the previous week and was at its highest level since mid-January. The seasonally adjusted Purchase Index also increased 15 percent from one week earlier and was at its highest level since the week ending February 1.
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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.70 percent from 3.77 percent, with points decreasing to 0.39 from 0.48 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
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Click on graph for larger image.

The first graph shows the refinance index.

There has been a sustained refinance boom for over a year, and 77 percent of all mortgage applications are for refinancing.

Refinance activity will probably slow in 2013.

The second graph shows the MBA mortgage purchase index.  The 4-week average of the purchase index has generally been trending up (slowly) over the last six months.

This index will probably continue to increase as conventional home purchase activity increases.