From the MBA: Mortgage Applications Decreased Over Two Week Period in Latest MBA Weekly Survey
Mortgage applications decreased 12 percent from two weeks earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 30, 2016. The results included adjustments to account for the Christmas holiday.
… The Refinance Index decreased 22 percent from two weeks ago. The seasonally adjusted Purchase Index decreased 2 percent from two weeks earlier. The unadjusted Purchase Index decreased 41 percent compared with two weeks ago and was 1 percent lower than the same week one year ago.
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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 4.39 percent from 4.45 percent, with points increasing to 0.43 from 0.39 (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 lower 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.