Refinance and Purchase Applications Both Decrease in this Week's MBA Survey
|January 24, 2007|
The Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey for the week ending January 19 revealed that the Market Composite Index, a measure of mortgage loan application volume, was 611.3, a decrease of 8.4 percent on a seasonally adjusted basis from 667.2 one week earlier. On an unadjusted basis, the Index decreased 5.7 percent compared with the previous week and was up 3.8 percent compared with the same week one year earlier.
The Refinance Index decreased by 9.6 percent to 1848.8 from 2045.8 the previous week and the seasonally adjusted Purchase Index decreased by 8.4 percent to 402.7 from 439.7 one week earlier. The seasonally adjusted Conventional Index decreased by 8.3 percent to 910.9 from 993.2 the previous week, and the seasonally adjusted Government Index decreased by 9.6 percent to 111.9 from 123.8 the previous week.
The four week moving average for the seasonally adjusted Market Index is up 2.2 percent to 631.3 from 617.4. The four week moving average is up 0.7 percent to 430.5 from 427.4 for the Purchase Index, while this average is up 3.4 percent to 1864.7 from 1803.7 for the Refinance Index.
The refinance share of mortgage activity decreased to 47.8 percent of total applications from 49.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 20.3 from 21.2 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.22 from 6.19 percent, with points decreasing to 0.97 from 0.98 (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 to 5.93 percent from 5.92 percent, with points increasing to 1.02 from 0.99 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 5.91 percent from 5.85, with points remaining unchanged at 0.81 (including the origination fee) for 80 percent LTV loans.