Mortgage Purchase Applications Increase Slightly

| September 1, 2010

The Mortgage Bankers Association (MBA) reported that its Purchase Index increased 1.8% last week from the week before, although it continues to hold near long-term lows and the MBA forecasts that sales are unlikely to strengthen in August or September.

“The sharp decline in MBA’s Purchase Application index in May had provided a clear leading indicator of the drops in new and existing home sales that were reported for June and July. Despite the slight increase in purchase activity in the past week, the continued low level of purchase applications indicates we are unlikely to see an increase in new home sales reported for August or existing home sales reported for September,” said Michael Fratantoni, MBA’s Vice President of Research and Economics.

These data remain aligned with our expectation that the housing sector will likely continue to weaken moving forward.

Category: Commentary, Market Update

Comments are closed.