Mortgage applications returned to their annual post-June pattern of decline last week.
Mortgage applications decreased 3.62% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 11, 2014. The previous week’s results included an adjustment for the July 4th holiday.
The non-seasonally adjusted Purchase Index INCREASED 15.63% from the previous 4th of July shortened week. But the Purchase Index NSA is down 17.2% from this time last year.
The seasonally adjusted Purchase Index decreased 7.65% percent from one week earlier to the lowest level since February 2014. The low money velocity economic recovery continues unabated.
The Refinance Index decreased 0.11% from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.33% from 4.32%, with points increasing to 0.20 from 0.16 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
I wish someone in the US Senate like Elizabeth Warren (D-MA) had shown Fed Chair Janet Yellen this chart and asked her to comment on it. Rapidly rising house prices, declining/stagnant wages and real household income.
Yellen repeated the famous Leslie Nielsen line from the movie Naked Gun, “Nothing to see here. Please disperse!”