by Bill McBride on 3/22/2017 07:00:00 AM
Mortgage applications decreased 2.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 17, 2017.
… The Refinance Index decreased 3 percent from the previous week. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 5 percent higher than the same week one year ago.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged at 4.46 percent, with points increasing to 0.41 from 0.37 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
Click on graph for larger image.
The first graph shows the refinance index since 1990.
Refinance activity remains low – and would not increase significantly unless rates fall sharply.
The second graph shows the MBA mortgage purchase index.
Even with the increase in mortgage rates over the last few months, purchase activity is still holding up.
However refinance activity has declined significantly since rates increased.