Mortgage Bankers Weekly Update: Mortgage Applications Decrease
Thanks to Howard for gathering this information. As always, the national average varies widely from region to region. "Homebuilder Profits up" claimed just last week on Wall Street 'does not compute' with actual housing starts going down.
Mortgage Bankers Association for the week of 09/22/2010
Market Composite Index:(loan application volume) decreased 1.4 percent on a seasonally adjusted basis from one week earlier.
Refinance Index: decreased 0.9 percent from the previous week, which is the third straight weekly decrease.
Purchase Index: decreased 3.3 percent from one week earlier
Refinance Share of Mortgage Activity: increased to 81.1 percent of total applications from 80.5 percent the previous week.
Arm Share: decreased to 5.9 percent from 6.2 percent of total applications from the previous week.
MBA outlook: (Excerpted from mbaa.org)
We predict that mortgage originations will decrease to $1.4 trillion in 2010 from an estimated $2.1 trillion in 2009. Purchase activity continues to be weak, although it was given a brief boost in the spring by the tax credit program, while refinance activity is being propped up by mortgage rates that remain close to historical lows, although there is less refinancing going on now than in previous periods of comparably low mortgage rates. Purchase originations will fall to $539 billion from $740 billion in 2009 and refinance originations will decrease to about $910 billion in 2010 from $1.4 trillion in 2009. This month’s originations estimates for 2010 forward were revised downwards to reflect the weaker July data for home sales and housing starts.Related Articles
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