Mortgage Applications Decrease in Latest MBA Survey
|May 30, 2007|
The Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey for the week ending May 25, 2007 found applications drop as interest rates rise.
The Market Composite Index, a measure of mortgage loan application volume, was 636.4, a decrease of 7.3 percent on a seasonally adjusted basis from 686.2 one week earlier. On an unadjusted basis, the Index decreased 7.4 percent compared with the previous week and was up 17 percent compared with the same week one year earlier.
The Refinance Index decreased 13 percent to 1874.6 from 2154.7 the previous week and the seasonally adjusted Purchase Index decreased 2.5 percent to 427 from 438.1 one week earlier. The seasonally adjusted Conventional Index decreased 7.9 percent to 934.8 from 1015.4 the previous week, and the seasonally adjusted Government Index increased 1 percent to 138.7 from 137.3 the previous week. The four week moving average for the seasonally adjusted Market Index is down 0.8 percent to 669.7 from 674.9. The four week moving average is down slightly to 433.9 from 434 for the Purchase Index, while this average is down 1.7 percent to 2065 from 2100.3 for the Refinance Index.
The refinance share of mortgage activity decreased to 39.7 percent of total applications from 42.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 17.7 from 18.1 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.32 percent from 6.23 percent, with points decreasing to 1.41 from 1.53 (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 6.05 from 5.96 percent, with points increasing to 1.27 from 1.24 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 5.74 from 5.72 percent, with points decreasing to 1.09 from 1.1 (including the origination fee) for 80 percent LTV loans.