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Mortgage Bankers Weekly Update : Mortgage Applications Decrease
Mortgage Bankers Association for the week of
3/10/2010
Market Composite Index:
(loan application volume)
increased 0.5 percent on a
seasonally adjusted
basis from one week earlier. On an unadjusted basis, the Index
increased 1.2 percent compared with the previous week.
Refinance Index:
decreased 1.5 percent the
previous week and the seasonally adjusted Purchase Index increased 5.7
percent
from one week earlier.
Purchase Index:
increased 7.2 percent
compared with the previous week and was 10.7 percent
lower than the same week one year ago.
Refinance
Share of Mortgage
Activity:
decreased to 67.2 percent of
total applications from 69.1 percent the previous week.
The refinance share is at its lowest level since it was 66.1
percent in October 2009.
Arm Share:
increased to 4.8 percent from
4.7 percent of total applications from
the previous week.
MBA outlook: (Excerpted from mbaa.org)
The
economy is growing again. 4Q
growth
of 2009 exceeded expectations due to strong growth in
business inventories. However inventory replacement is a short lived spurt, unless consumers buy. Weakness in the job market and a fragile recovery are likely to keep consumers from spending on big ticket items like houses and
cars.
Existing
home sales fell back in December and new home builders are not upbeat.
The
Fed remains unlikely to raise rates, however, they are going to end their MBS purchase program. This will certainly cause a rise in interest rates as the marketplace demands higher rates to compensate for risk.
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