Friday, February 12, 2010

Weak Purchase Activity Lowers Mortgage Demand

Less-than-stellar purchase activity pushed mortgage demand down 1.2 percent on a seasonally adjusted basis during the week ending February 5, the Mortgage Bankers Association said today.

The group’s seasonally adjusted purchase index was off 7.0 percent compared with one week earlier, and the unadjusted purchase index was 7.5 percent lower than the same week a year ago.

Meanwhile, refinance activity inched up 1.4 percent compared with the previous week as mortgage rates dipped back below the five-percent threshold, pushing the refinance share of applications to 69.7 percent from 69.2 percent.

The popular 30-year fixed-rate mortgage averaged 4.94 percent during the week, down from 5.01 percent seven days earlier.

The less popular 15-year fixed remained unchanged at 4.33 percent, and the even less popular one-year adjustable-rate mortgage decreased to 6.68 percent from 6.70 percent.

The ARM-share of total applications remained unchanged at just 4.5 percent of total applications.

The MBA’s weekly survey covers more than half of all retail, residential home loan applications, but does not factor out duplicates or declined files.

Keep in mind that borrowers are double and triple-apping a lot more than they had been in the past because mortgage lenders and underwriters are much more stringent than they were previously.

Any questions or concerns don’t hesitate to contact me, Gene Neal your Mortgage Expert.

Tel (631) 687-3510 Ext. 101

Fax (631) 687-3513