October 29, 2009

Weekly Mortgage Market Update

Mortgage Bankers Association for the week of October 28, 2009

Market Composite Index: (loan application volume) decreased 12.3 percent on a seasonally adjusted basis from one week earlier

Refinance Index: decreased 16.2 percent from the previous week

Purchase Index: decreased 5.2 percent from one week earlier.

Refinance Share of Mortgage Activity: decreased to 62.3 percent of total applications from 65.0 percent the previous week.

ARM Refinance Activity: increased to 6.9 percent from 6.4 percent of total applications from the previous week.

MBA outlook:
(Excerpted from mbaa.org)

New home sales increased in August, for the fifth consecutive monthly increase. The first-time homebuyer tax credit likely helped boost sales since a larger share of home sales tended to be concentrated in lower-priced homes. New home sales have been up about 30 percent since reaching a record low in January. Total existing home sales fell slightly for August but were still about 13 percent higher than their record low in January despite the decrease.

For existing homes, the number of homes available for sale has declined about 16 percent from a year ago. The months’ supply decreased to 8.5 in August from 9.4 months in July, which makes this the lowest level since April 2007 and a significant decrease from the 11.3 months observed in April 2008. However, rising foreclosures continue to add to inventories, and many owners and investors who, after holding these properties off the market for the past year, may start listing their properties if the market begins to recover

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