Even after last week, we just can't seem to get enough housing data. Last week, the Market Composite Index increased 5.3%, with the Refinance Index increasing 2.7% and the Purchase Index increasing 10.0%. Refinancing dropped to 58.5% of total mortgage applications, adjustable-rate mortgages increased to 6.5% of total applications, and the average contract interest rate for a 30-year fixed-rate mortgage decreased to 4.83%
We now turn to the Mortgage Bankers Association press release for the latest news, which is not a good as we might have hoped. The week ending 4/27 saw the Market Composite Index decline 5.6%, driven by a modest 0.6% decline in the Refinance Index and a steep 13.6% decline in the Purchase Index. The MBA puts most of the blame for that 13.6% decline on new, higher FHA premiums. "This decrease reverses a 20 percent increase in government purchase applications over a four week period, which was likely driven by borrowers attempting to beat this deadline," says Michael Fratantoni, MBA's Vice President of Research and Economics.
To list a few other pieces of information, refinancing increased to 61.6% of total mortgage applications, while adjustable-rate mortgages remained level at 6.5% of total applications. Also, the average contract interest rate for a 30-year fixed-rate mortgage decreased to 4.80%.