Interest Rates Remain Stable In Latest MBA Survey

January 15, 2003

Refinancing Boom Remains Strong

WASHINGTON, D.C. (January 15, 2003) - The Market Composite Index of mortgage loan applications -- a measure of mortgage loan applications for purchases and refinancings -- for the week ending January 10 decreased 2.4 percent to 1154.3 on a seasonally-adjusted basis from 1182.3 the previous week, according to the Weekly Mortgage Applications Survey of the Mortgage Bankers Association of America (MBA), which was released today. On an unadjusted basis, the Index increased 41.0 percent and was up 108.7 percent compared to the same week a year earlier.

The MBA seasonally adjusted Purchase Index decreased to 358.0 from 376.2 the previous week. The seasonally adjusted Refinance Index decreased to 5786.4 from 5871.1 the previous week. Other seasonally adjusted index activity included the Conventional Index, which decreased to 1683.0 from 1713.1 the previous week. The Government Index decreased to 271.8 from 296.7 the previous week.

Refinancing activity represented 77.7 percent of total applications, decreasing slightly from 77.8 percent the previous week. The share of ARM activity increased to 12.6 percent from 11.9 percent the previous week.

The average contract interest rate for 30-year fixed rate mortgages decreased slightly to 5.84 percent from 5.85 percent the previous week, with points decreasing slightly to 1.42 from 1.43 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed rate mortgages increased slightly to 5.21 percent from 5.20 percent the previous week, with points increasing to 1.48 from 0.97 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 1-year ARMs decreased sligthly to 3.75 percent from 3.76 percent the previous week, with points increasing to 1.01 from 0.98 the previous week (including the origination fee) for 80 percent LTV loans.

Source: Mortgage Bankers Association


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