Home Loan and Refinance Applications Decline

By Kyle Chezum Updated on 9/25/2013

The Mortgage Bankers Association (MBA)'s loan application survey for the week ending Feb 11, 2011 indicates that the demand for home loans is declining. In an environment that mortgage rates are falling, a trend of increasing refi apps implies consumers are seeking out lower monthly payments. When consumers lower their mortgage payments and increase disposable income through refinancing, it is obviously positive for the economy. A trend of declining home purchase apps indicates home buyer demand is shrinking.

Excerpts from the Release...

The Refinance Index decreased 11.4 percent from the previous week and is the lowest Refinance Index recorded in the survey since the week ending July 3, 2009. The four week moving average is down 6.2 percent. The refinance share of mortgage activity decreased to 64.0 percent of total applications from 66.6 percent the previous week. This is the fourth straight week the share has declined.