Mortgage Application Volume Down 10.6 Percent In Holiday Shortened Week
January 5, 2005
WASHINGTON, D.C. — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending December 31. The Market Composite Index - a measure of mortgage loan application volume - was 605.7, a decrease of 10.6 percent on a seasonally adjusted basis from 677.4 one week earlier. On an unadjusted basis, the Index decreased 9.4 percent compared with last week but was up 0.2 percent compared with the same week one year earlier.
During the holiday-shortened week, the MBA seasonally adjusted Purchase Index decreased by 13.7 percent to 417.3 from 483.8 the previous week. The seasonally adjusted Refinance Index decreased by 5.7 percent to 1701.3 from 1803.9 one week earlier.
Other seasonally adjusted index activity included the Conventional Index, which decreased 10.8 percent to 898.4 from 1006.7 the previous week. The Government Index decreased 8.2 percent to 117.3 from 127.8 the previous week.
The refinance share of mortgage activity increased to 48.0 percent of total applications from 46.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 32.6 percent from 33.8 percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.67 percent from 5.72 percent one week earlier, with points increasing to 1.35 from 1.33 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 remained at 5.12, with points decreasing to 1.25 from 1.32 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 4.17 percent from 4.05 percent one week earlier, with points remaining at 0.98 (including the origination fee) for 80 percent LTV loans.