The Mortgage Bankers Association announced on Wednesday that the mortgage purchase application index rose just 0.9% from the previous week to 264.4.
This is the fourth consecutive week in which the index has remained below 265, a signal that demand for real estate continues to face a headwind.
The broader measure for the purchase index, the 4-week moving average, is down -2%.
The 30-year fixed rate mortgage fell from 5.36% to 5.17%.
While the NAR's pending home sales index continues to show strength, the MBA's purchase application index is telling a different story.
The reason this index is relevant is because it gives an indication of future demand for real estate. With foreclosure filings up 33% year over year (Source: RealtyTrac), demand for real estate needs to increase to be able to absorb this new wave of foreclosures that is going to make land-fall over the next two to three years.
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