![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgby2Lqxz8H9NILTkHRpj-VOQDaOvbxGxtunlT4FxxjgRu6z-ec-4fGk9-mH5gnvp0PLWxhDjBzCo319hBm6v_qUqlQ9LnuzI0ZkGUVmZ8zOHGI2W2rMfpNZxBnbtNdz_Uwl2Ze/s400/moneyhouse.jpg)
The purchase application index has been highlighted as a particularly important data series as it very broadly captures the demand side of residential real estate for both new and existing home purchases.
The latest data is showing that the average rate for a 30 year fixed rate mortgage remained unchanged since the last week at 4.94% while the purchase application volume declined 4.0% and the refinance application volume decreased 1.2% over the same period.
It’s important to recognize that despite the Federal Reserve’s “quantitative easing” measures and record low interest rates, the purchase application volume now sits near the lowest reading since 2000.
The following chart shows how the principle and interest cost and estimated annual income required to cover the PITI (using the 29% “rule of thumb”) on a $400,000 loan has changed since November 2006.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOsxGIuW_LahvmFXLmqgzA8afN_dBCuJvzJ4UICuQwpavsLSbeYsruhOh6udoRXWfDlSbd14LkMOFU86TzvQrnyGW-nCEVxyTrM7uauX5_f9GYgj3ogwOvjSJBoIrBHT_FYNDj/s400/mbaa021710income.jpg)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCA_J2zvFA0dJr2DSACWcnkmI3sxETCbZplO_2eCru4DbPPf9HroCiOyQwf28_EMd7a1rNZhT1jk6x_WinKA9JtMMWnSoL8f2HZ9RFGKlxGNia5dNlHAAVds201FDEyoxr4hND/s400/mbaa021710rates.jpg)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJ0Y7KuPo0kXOWC313eAlQ4lJf9Hl9VWIUsa99mlBvwEr1PKNZ8dIU5Catwfi34IGYHeTQUcI4tTfNZlCu907E7aE1kXJD6bbY6Yr7e5ec5rz5kyRqT-RkW6wxB6ThoOhJQ9PA/s400/mbaa021710allrates.jpg)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpGsdUZEngO_FyVA5w2Myg35uPlEOEJIR4VA0Lb-NZGSoSZKQXiiWzAy-VW0qRhhWiKRZ5xtDUvXLpNWrIPiyv3KiUe6CLGq2pdlttoM4K6tHfRG9VQoYpaubQRUusVEEdQjFR/s400/mbaa021710pi.jpg)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNYWjVdURTIgKkx8l5wzi0EL0_QmxSRDmzEsM5oEKAJIBp8SUqW5_7KgMFJ0_YpT5v8Yul3_Nb-UGENusrCiHha-WewZ_hX97qk2wHWShIseYtMHulCybxo_5khF2autBxnNWP/s400/mbaa021710ri.jpg)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8Sf5R8T0sye-qp-cEx_H9jaLJN-gMR8fN6WgFIrzKDiLubUYz90AwPlGNC0Q6Ih3ULhS9BjBRCYUYBDLUUYm92wirDOU7tfN8YH697cOpEGM6psWLTKUR9Qtk5qBsYyuiMimg/s400/mbaa021710ci.jpg)