MBA Market Index Down 6.8 Percent in Latest Survey

February 12, 2004

WASHINGTON, D.C. ? The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 6. The Market Composite Index of mortgage loan applications-a measure of mortgage loan applications for purchases and refinancings-decreased by 6.8 percent to 797.8 on a seasonally adjusted basis from 855.7 one week earlier. On an unadjusted basis, the Index decreased by 4.5 percent compared with last week and was down 26.5 percent compared with the same week one year earlier.

The MBA seasonally adjusted Purchase Index decreased by 9.4 percent to 402.2 from 444.0 the previous week. The seasonally adjusted Refinance Index decreased by 4.7 percent to 3099.1 from 3250.6 one week earlier. Other seasonally adjusted index activity included the Conventional Index, which decreased 6.5 percent to 1140.9 from 1219.7 the previous week. The Government Index decreased 9.3 percent to 225.2 from 248.3 the previous week.

The refinance share of mortgage activity decreased to 56.9 percent of total applications from 57.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 26.3 percent from 27.2 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.60 percent from 5.63 percent one week earlier , with points decreasing to 1.40 from 1.42 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 decreased to 4.88 percent from 4.92 percent one week earlier , with points decreasing to 1.26 from 1.38 the previous week (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs decreased to 3.33 percent from 3.39 percent one week earlier , with points decreasing to 1.00 from 1.04 the previous week (including the origination fee) for 80 percent LTV loans.

Source: MBA