Market Composite Index: (loan application volume) decreased 4.5 percent on a seasonally adjusted basis from one week earlier.
Refinance Index: decreased 9.5 percent from the previous week
Purchase Index: increased 9.6 percent from one week earlier.
Refinance Share of Mortgage Activity: increased to 72.1 percent of total applications from 71.7 percent the previous week
ARM Refinance Activity: decreased to 5.4 percent from 5.5 percent of total applications from the previous week.
MBA outlook: (Excerpted from mbaa.org)
In summary the MBAA sees another year of high employment, rising home sales and prices beginning to stabilize. But continued weakness in the job market and excess supply and shadow inventory will slow any recovery in the housing market.
The Federal Reserve will extend their agency MBS purchase program through the end of the first quarter of 2010. However, Fed and Treasury purchases have accounted for the vast majority of all new issuance in this sector in recent months, and rates will increase when the Fed steps out of the market completely.
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