Mortgage applications index hits 6-year low: MBA
|June 4, 2008|
Rising rates and consumer uncertainty helped to depress mortgage applications to 6-year lows according to the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey for the week ending May 30, 2008.
The Market Composite Index, a measure of mortgage loan application volume, was 502.3, a decrease of 15.3 percent on a seasonally adjusted basis from 593.3 one week earlier. This week’s results include an adjustment to account for the Memorial Day holiday. On an unadjusted basis, the Index decreased 24.2 percent compared with the previous week and was down 20.3 percent compared with the same week one year earlier.
The Refinance Index decreased 25.7 percent to 1496.1 from 2013.5 the previous week and the seasonally adjusted Purchase Index decreased 5.4 percent to 333.6 from 352.7 one week earlier. The Conventional Purchase Index decreased 6.1 percent while the Government Purchase Index (largely FHA) decreased 3.3 percent.
The four week moving average for the seasonally adjusted Market Index is down 6 percent to 597.9 from 636.2. The four week moving average is down 3.3 percent to 354.3 from 366.2 for the Purchase Index, while this average is down 8.7 percent to 2035.6 from 2230.0 for the Refinance Index.
The refinance share of mortgage activity decreased to 40.6 percent of total applications from 46.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.7 from 9.3 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.17 percent from 5.96 percent, with points decreasing to 1.06 from 1.11 (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 5.7 percent from 5.49 percent, with points decreasing to 1.06 from 1.15 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs decreased to 6.8 percent from 6.92 percent, with points increasing to 1.44 from 1.42 (including the origination fee) for 80 percent LTV loans.