From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey
Mortgage applications increased 0.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 29, 2014. …
The Refinance Index increased 1 percent from the previous week. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. …
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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.25 percent, the lowest level since June 2013, from 4.28 percent, with points decreasing to 0.24 from 0.25 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
Click on graph for larger image.
The first graph shows the refinance index.
The refinance index is down 73% from the levels in May 2013.
As expected, refinance activity is very low this year.
The second graph shows the MBA mortgage purchase index.
According to the MBA, the unadjusted purchase index is down about 12% from a year ago.