Econoday Economic Report: MBA Purchase Applications June 27, 2012

2012 Economic Calendar

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MBA Purchase Applications

Released On 6/27/2012 7:00:00 AM For wk6/22, 2012

	Prior	Actual
Composite Index - W/W Change	-0.8 %	-7.1 %
Purchase Index - W/W Change	-9.0 %	-1.0 %
Refinance Index - W/W Change	1.0 %	-8.0 %

Highlights
The purchase index fell 1 percent in the June 22 week which follows large swings downward and upward in the prior two weeks. The report attributes an 8.0 percent drop in refinancing, which follows a spike earlier this month, to implementation of new FHA premiums and related borrower timing to lower their premiums. Rates are at or near record lows with the average 30-year mortgage for conforming loans ($417,500 and under) at 3.88 percent.

Definition
The Mortgage Bankers' Association compiles various mortgage loan indexes. The purchase applications index measures applications at mortgage lenders. This is a leading indicator for single-family home sales and housing construction. Why Investors Care