Mortgage Application Volume Plumments
|February 20, 2008|
Mortgage application volume tumbled 22.6 percent during the week ending Feb. 15 as most interest rates rose, according to the Mortgage Bankers Association's weekly application survey.
The Market Composite Index for the week ending February 15, 2008, a measure of mortgage loan application volume, was 822.8, a decrease of 22.6 percent on a seasonally adjusted basis from 1063.5 one week earlier. On an unadjusted basis, the Index decreased 21.2 percent compared with the previous week and was up 33.9 percent compared with the same week one year earlier.
The Refinance Index decreased 27.9 percent to 3533.8 from 4901.5 the previous week and the seasonally adjusted Purchase Index decreased 11.5 percent to 357.6 from 403.9 one week earlier.
The Conventional Purchase Index decreased 12.3 percent while the Government Purchase Index (largely FHA) increased 7.2 percent. On an unadjusted basis, the Purchase Index decreased 7.4 percent to 377.3 from 407.4 the previous week. The seasonally adjusted Conventional Index decreased 24.2 percent to 1153.4 from 1522.6 the previous week, and the seasonally adjusted Government Index decreased 8.8 percent to 271.8 from 297.9 the previous week.
The four week moving average for the seasonally adjusted Market Index is down 3.8 percent to 1007.0 from 1046.6. The four week moving average is down 5.1 percent to 382.2 from 402.8 for the Purchase Index, while this average is down 3.3 percent to 4648.2 from 4809.3 for the Refinance Index.
The refinance share of mortgage activity decreased to 61.7 percent of total applications from 67.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 12.8 from 9.9 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.09 percent from 5.72 percent, with points decreasing to 1.10 from 1.15 (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 5.55 percent from 5.18 percent, with points unchanged at 1.08 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs remained unchanged at 5.72 percent, with points increasing to 0.91 from 0.90 (including the origination fee) for 80 percent LTV loans.