US new purchases decrease by 4% in latest weekly survey

The purchase index slipped 4% percent for the week, but the refinance index, due to low borrowing rates, was able to extend its gain, up 0.9% in the week. These are data for the March 11 week.

Mortgage rates are more and more favorable as safe-haven investment flows move into US Treasuries. The average 30-year mortgage fell more than 20 basis points in the week to 4.79 percent for a two-month low.

But low rates do little to convince someone to purchase a home, but obviously for those who already are saddled with mortgage debt, it does make sense to refi. Via MBA:
The Market Composite Index, a measure of mortgage loan application volume, decreased 0.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 0.5 percent compared with the previous week. The Refinance Index increased 0.9 percent from the previous week and is the highest Refinance Index recorded in the survey since December 2010. The seasonally adjusted Purchase Index decreased 4.0 percent from one week earlier. The unadjusted Purchase Index decreased 3.2 percent compared with the previous week and was 15.5 percent lower than the same week one year ago.

The four week moving average for the seasonally adjusted Market Index is up 4.9 percent. The four week moving average is up 1.6 percent for the seasonally adjusted Purchase Index, while this average is up 6.6 percent for the Refinance Index.

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