July 5, 2010

Mortgage Bankers Weekly Update: Mortgage Applications Decrease

Mortgage Bankers Association for the week of  6/30/2010

Market Composite Index: (loan application volume)   increased 8.8 percent on a seasonally adjusted basis from one week earlier.

Refinance Index: increased 12.6 percent from the previous week and is the highest Refinance Index observed in the survey since the week ending May 22, 2009.

Purchase Index: decreased 3.3 percent from one week earlier.

Refinance Share of Mortgage Activity: increased to 76.8 percent of total applications from 73.8 percent the previous week, which is the highest refinance share observed in the survey since April 2009.

Arm Share: decreased to 4.7 percent from 4.9 percent of total applications from the previous week.

MBA outlook:
(Excerpted from mbaa.org)

We predict that mortgage originations will fall to $1.4 trillion in 2010 from an estimated $2.1 trillion in 2009.  Purchase originations will fall slightly to $725 billion, as home prices continue to fall and the effect from the homebuyer tax credits wane.  Refinance originations will fall to $717 billion in 2010 from $1.4 trillion in 2009, but we continue to mark up our refinance origination forecast given the sharp drop in mortgage rates.

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