Econintersect: Mortgage applications are up w/e 28January2011 over the previous week shortened by the Martin Luther King holiday according to the Mortgage Bankers Association (MBA).
However, mortgage applications have been flat over the last two weeks. Michael Fratantoni, MBA’s Vice President of Research and Economics stated:
“Applications increased this week relative to the holiday week. Looking over the past two weeks, purchase applications are flat, and refinance applications are down about five percent.”
If mortgage applications are flat, and refinances are down – then original mortgage applications are up. Other information in the MBA press release:
The refinance share of mortgage activity decreased to 69.3 percent of total applications from 70.3 percent the previous week. This is the lowest refinance share observed in the survey since the week ending May 14, 2010. The adjustable-rate mortgage (ARM) share of activity increased to 5.5 percent from 5.2 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.81 percent from 4.80 percent, with points decreasing to 1.02 from 1.19 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 4.13 percent from 4.12 percent, with points decreasing to 1.01 from 1.26 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.