April 1, 2010

Mortgage Bankers Association: Purchases Up!




Mortgage Bankers Association for the week of  3/31/2010

Market Composite Index: (loan application volume)   increased 1.3 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 1.5 percent compared with the previous week.
Refinance Index: decreased 1.3 percent from the previous week and the seasonally adjusted Purchase Index increased 6.8 percent from one week earlier.  This is the highest Purchase Index since the week ending October 30, 2009.
Purchase Index:  increased 6.8 percent compared with the previous week and was 9.3 percent lower than the same week one year ago.
Refinance Share of Mortgage Activity:  decreased to 63.2 percent of total applications from 65.0 percent the previous week. This is the lowest refinance share recorded in the survey since the week ending October 23, 2009.
Arm Share: increased to 5.2 percent from 4.8 percent of total applications from the previous week.
MBA outlook: (Excerpted from mbaa.org)

Purchase applications have increased over the past month, and are now at their highest level since last October when many homebuyers were rushing to get loans closed before the expected expiration of the homebuyer tax credit, said Michael Fratantoni, MBAs Vice President of Research and Economics.  We may be seeing a similar pattern now, as the extended version of the tax credit ends next month.
The housing industry faces another challenge during the spring building season stemming from the end on March 31 of the Federal Reserves program of buying mortgage-backed securities. The impact on mortgage interest rates that follows is not expected to be dramatic, but it will certainly act as a damper on home buying. The inventory of unsold homes has declined but remains well above normal levels, and will likely remain relatively high given pending foreclosures

Related Articles
  • Expect Mortgage rates To Rise



  • Good News! MBAA New Forebearance Program



  • The Politics of Housing
  • No comments: