Mortgage Applications Increase in Latest MBA Survey
|May 9, 2007|
According to the Mortgage Bankers Association (MBA)weekly Mortgage Applications Survey for the week ending May 4, 2007 rose for all home mortgages The Market Composite Index, a measure of mortgage loan application volume, was 680.7, an increase of 3.6 percent on a seasonally adjusted basis from 657.2 one week earlier. On an unadjusted basis, the Index increased 4 percent compared with the previous week and was up 19.9 percent compared with the same week one year earlier.
The Refinance Index increased 4.9 percent to 2115.2 from 2015.8 the previous week and the seasonally adjusted Purchase Index increased 2.6 percent to 438.3 from 427.3 one week earlier. The seasonally adjusted Conventional Index increased 3.2 percent to 1003.1 from 972.3 the previous week, and the seasonally adjusted Government Index increased 8.6 percent to 143.2 from 131.8 the previous week.
The large jump in the Government Loan Applications Index, which is primarily composed of FHA loans, puts it at its highest level in almost two years, or since July 1, 2005. The four week moving average for the seasonally adjusted Market Index is up 1.3 percent to 655.4 from 646.9. The four week moving average is up 1.5 percent to 418.3 from 412.2 for the Purchase Index, while this average is up 1.2 percent to 2055.2 from 2030.2 for the Refinance Index.
The refinance share of mortgage activity increased to 41.8 percent of total applications from 41.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 18 from 17.9 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.1 percent from 6.14 percent, with points increasing to 1.48 from 1.31 (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 5.82 from 5.83 percent, with points unchanged at 1.25 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs decreased to 5.71 from 5.79 percent, with points unchanged at 0.73 (including the origination fee) for 80 percent LTV loans.