Bailout

MBA: Mortgage Applications Decrease as FHA Insurance Rates Increase

By Anonymous

The Market Composite Index, a measure of mortgage loan application volume, decreased 9.6 percent on a seasonally adjusted basis from one week earlier. ...

"Applications for government mortgages dropped substantially last week, following the implementation of an increase in FHA mortgage insurance premiums," said Mike Fratantoni, MBA's Vice President of Research and Economics. "Applications for conventional mortgages also dropped last week, with refinance application volume continuing to drop following last week's jump in rates.?

The Refinance Index decreased 9.0 percent from the previous week, marking the index?s fifth consecutive decline. The seasonally adjusted Purchase Index decreased 10.5 percent from one week earlier. ...

The refinance share of mortgage activity increased to 58.9 percent of total applications from 58.7 percent the previous week. ...

The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.17 percent from 5.31 percent, with points increasing to 0.91 from 0.64 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

This graph shows the MBA Purchase Index and four week moving average since 1990.

If there is any increase in activity because of the expiration of the tax credit, it will probably be this month. I expect any increase this year to be less than the increase last year ...

Full post as published by Calculated Risk on April 14, 2010 (boomark / email).