Purchase Applications Increase
Posted February 29, 2012 4:56 p.m. EST
The Mortgage Banker’s Weekly Mortgage Applications Index dropped overall last week by 0.3 percent.
Refinances were the driving force in the overall decrease as demand fell, but purchases took a huge leap, increasing over 8 percent for the week. Refinance activity now accounts for 77.9 percent of all mortgage activity, and that figure is down from 80.1% last week.
Continued low interest rates and an increased housing appetite have combined to really push purchases this week.
U.S. 4th Quarter GDP was up 3 percent versus the prior estimate of 2.8 percent, helping to give further credence to the current growth mentality of our economy.
The Fed’s “Beige Book” Report, which is a snapshot of economic conditions from the Federal Reserve’s twelve regional districts, reported today that economic conditions are also getting better across the board. The report highlighted manufacturing and housing, indicating that we’re seeing an increase in capital spending across the board.
Finally today, in another blow to the GSE’s, Fannie Mae announced a $2.4 billion loss in the fourth quarter of 2011. The loss is in sharp contrast to the $73 million profit the entity recorded for the same quarter in 2010.