Mortgage purchase apps up; rates down

Source: Calculated Risk

Weekly economic scorecards are either good news, bad news, or no news, and this one falls into the third category. Inertial market forces--especially the hold-up in troubled-home loan resolution thanks to bad documentation process among the biggest mortgage servicers--grip the supply and demand like a knot in a garden hose. Calculated Risk's Bill McBride notes about this indicator as he has for months "The four week average of purchase activity is at about 1997 levels, although this doesn't include the very high percentage of cash buyers. This suggests weak existing home sales through June (not counting cash buyers)."

The Refinance Index increased 9.0 percent from the previous week, and is at its highest level since the week ending March 18, 2011. The seasonally adjusted Purchase Index increased 6.7 percent from one week earlier.
...
"The 30-year fixed mortgage rate is now 46 basis points below its 2011 peak, and has decreased for four straight weeks by a total of 31 basis points,” said Michael Fratantoni, MBA’s Vice President of Research. “Over this four week span, the refinance index has increased by about 18 percent. Despite the recent increases however, refinance application volumes remain more than 50 percent below levels seen last fall.”
...
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.67 percent from 4.76 percent, with points increasing to 1.10 from 0.75 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The 30-year rate is at its lowest since December 2010.

Refinance activity increased as mortgage rates fell to the lowest level since December 2010.

The four week average of purchase activity is at about 1997 levels, although this doesn't include the very high percentage of cash buyers. This suggests weak existing home sales through June (not counting cash buyers).

URL to original article: http://www.builderonline.com/builder-pulse/mortgage-purchase-apps-up--rates-down.aspx?cid=NWBD110511002

For further information on Fresno Real Estate check: http://www.londonproperties.com