Mortgage Demand Still Soft
Another week, more weak mortgage demand, according to the Mortgage Bankers Association.
The group’s market composite index climbed just 0.5 percent on a seasonally adjusted basis, or 1.2 percent unadjusted, compared with one week earlier.
The refinance index fell 1.5 percent, while purchase activity finally got some legs – seasonally adjusted purchase applications were up 5.7 percent.
The unadjusted purchase index increased 7.2 percent from one week earlier, but was still off 10.7 percent compared to a year ago.
The refinance share of mortgage activity fell to 67.2 percent of total applications from 69.1 percent as a result.
It now sits at its lowest level since October 2009, when it held a 66.1 percent share.
That may have something to do with higher interest rates, as the popular 30-year fixed averaged 5.01 percent last week, up from 4.95 percent.
The 15-year fixed increased to 4.32 percent from 4.27 percent, and the one-year adjustable-rate mortgage climbed three basis points to 6.80 percent.
Despite out-pricing fixed-rate options, the ARM-share of applications increased to 5.1 percent from 4.8 percent, its highest level since November 2009.
The MBA’s weekly survey covers more than half of all retail, residential mortgage applications, but does not factor out duplicate or declined apps.
(photo: photocapy)
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