July 10, 2011

Mortgage Bankers Weekly Survey: Mortgage Applications Decrease


Fixed rate mortgages are changed little this week, at 4.5%.

The MBAA reports their Market Composite Index: (Loan application volume)  decreased 5.2 percent on a seasonally adjusted basis from one week earlier.
Their Refinance Index: decreased 9.2 percent from the previous week and for the last three weeks. However,Mortgage applications also decreased 5.9% from one week earlier The MBAA reports their Purchase Indexincreased 4.4 percent compared with the previous week and was 11.7 percent higher than the same week one year ago.
Key to better numbers is growth, especially job growth. The MBAA forecasts a slower, but positive growth situation. 4th quarter 2010 GDP growth was 3.1%. After a dip to 1.8% this quarter, they see growth through 2012 largely around 2.8%. Not likely a strong scenario for enough job growth to help the housing markets push forward. 
Confirming the trend is the MBAA mortgage orgination forec

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