Weekly purchase applications fell 6.1%, while refi applications dropped 6.5%

Both purchase and refinancing applications fell back steeply in the Feb 25 week. Purchase apps fell 6.1% with refi apps down 6.5%. This just adds another in a long list of negatives for the housing sector. The decline also hit during a week when rates moved steeply lower, down 16 basis points for 30-year fixed mortgages to an average 4.84 percent.

Housing has not finished its amazing fall from grace.  We still have some pain to go with the foreclosure catastrophe only half-way through and heaven forbid if rates were to increase dramatically. Via MBA:
Mortgage applications decreased 6.5 percent from one week earlier, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending February 25, 2011. The results do not include an adjustment for the Presidents' Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 6.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5.5 percent compared with the previous week. The Refinance Index decreased 6.5 percent from the previous week. The seasonally adjusted Purchase Index decreased 6.1 percent from one week earlier. The unadjusted Purchase Index decreased 3.5 percent compared with the previous week and was 19.6 percent lower than the same week one year ago.

The four week moving average for the seasonally adjusted Market Index is down 2.5 percent. The four week moving average is down 2.2 percent for the seasonally adjusted Purchase Index, while this average is down 2.7 percent for the Refinance Index.

The refinance share of mortgage activity decreased to 64.9 percent of total applications from 65.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.5 percent from 5.6 percent of total applications from the previous week.


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