From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey
Mortgage applications increased 2.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 16, 2016.
… The Refinance Index increased 3 percent from the previous week. The seasonally adjusted Purchase Index increased 3 percent from one week earlier. The unadjusted Purchase Index decreased 0.1 percent compared with the previous week and was 1 percent higher than the same week one year ago.
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since May 2014, 4.41 percent, from 4.28 percent, with points increasing to 0.38 from 0.36 (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 since 1990.
With the current level of mortgage rates, refinance activity will probably decline further.
The second graph shows the MBA mortgage purchase index.
The purchase index was “1 percent higher than the same week one year ago”.
Even with the increase in mortgage rates, purchase activity is still holding up. However refinance activity has declined significantly – and will probably decline further.