The seasonally adjusted Purchase Index increased 10.0 percent to its highest level since December 3, 2010,driven largely by a 17.6 percent increase in Government purchase applications. The unadjusted Purchase Index increased 10.9 percent compared with the previous week and was 11.4 percent lower than the same week one year ago. The four week moving average is up 2.5 percent.
Wednesday, April 20, 2011
Purchase Apps Climb as Borrowers Rush to Beat FHA Fee Hike
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LinkThe Mortgage Bankers Association (MBA) today released itsWeekly Mortgage Applications Survey for the week ending April 15, 2011. The MBA's loan application survey covers over 50% of all U.S. residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a snapshot view of consumer demand for mortgage loans. In a falling mortgage rate environment, a trend of increasing refinance applications implies consumers are seeking out lower monthly payments. If consumers are able to reduce their monthly mortgage payment and increase disposable income through refinancing, it can be a positive for the economy as a whole (may boost consumer spending. Also allows debtors to pay down personal liabilities faster). A trend of declining purchase applications implies home buyer demand is shrinking. Excerpts from the Release... The Market Composite Index, a measure of mortgage loan application volume, increased 5.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 5.9 percent compared with the previous week. The Refinance Index increased 2.7 percent from the previous week. The four week moving average is down 5.7 percent. The refinance share of mortgage activity decreased to 58.5 percent of total applications from 60.3 percent the previous week. This is the lowest refinance share since May 7, 2010.
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