Recent Updates

  • Croatia: Core CPI, Consumer Confidence (Sep)
  • Canada: Wholesale Trade (Aug), Nonresidential Building Construction (Q3)
  • Canada Regional: Wholesale Trade by Province (Aug)
  • Morocco: CPI (Sep)
  • Palestine: Public Debt (Sep-Prelim)
  • Bangladesh: CPI (Sep)
  • Luxembourg: Employment and Unemployment (Sep)
  • Ukraine: Average Sales Prices of Agricultural Products (Sep); Trade by Commodity, Import and Export Indexes (Aug), HPI (Q3)
  • more updates...

Economy in Brief

Mortgage Applications Surged
by Tom Moeller July 6, 2005

Total mortgage applications surged 9.6% in the opening week of July, according to the Mortgage Bankers Association, and began the month 6.4% above the June average which rose 9.9% versus May.

Purchase applications jumped 9.1% w/w and began the month 6.0% above June which rose 1.3% from May. During the last ten years there has been a 50% correlation between the y/y change in purchase applications and the change in new plus existing single family home sales.

Applications to refinance recovered 10.2% w/w following two weeks of decline and opened the month 6.9% ahead of June.

The effective interest rate on a conventional 30-year mortgage rose to 5.81% following several weeks of decline from the peak of 6.34% in late March. The effective rate on a 15-year mortgage also rose to 5.47% after falling from the peak of 5.96%.

The Mortgage Bankers Association surveys between 20 to 35 of the top lenders in the U.S. housing industry to derive its refinance, purchase and market indexes. The weekly survey accounts for more than 40% of all applications processed each week by mortgage lenders. Visit the Mortgage Bankers Association site here.

MBA Mortgage Applications (3/16/90=100) 07/01/05 06/24/05 Y/Y 2004 2003 2002
Total Market Index 853.4 778.4 24.2% 735.1 1,067.9 799.7
  Purchase 520.8 477.4 4.0% 454.5 395.1 354.7
  Refinancing 2,788.2 2,529.2 57.6% 2,366.8 4,981.8 3,388.0
close
large image