Mortgage Applications Plunge
|June 18, 2008|
According to the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey for the week ending June 13, 2008. the Market Composite Index, a measure of mortgage loan application volume, was 508.4, a decrease of 8.7 percent on a seasonally adjusted basis from 557.1 one week earlier. On an unadjusted basis, the Index decreased 9.6 percent compared with the previous week and was down 21.3 percent compared with the same week one year earlier.
The Refinance Index decreased 15 percent to 1378.6 from 1622.1 the previous week and the seasonally adjusted Purchase Index decreased 4.3 percent to 360.2 from 376.2 one week earlier. The Conventional Purchase Index decreased 7.2 percent while the Government Purchase Index (largely FHA) increased 4 percent. The four week moving average for the seasonally adjusted Market Index is down 5 percent to 540.3 from 568.6. The four week moving average is up 0.5 percent to 355.7 from 353.8 for the Purchase Index, while this average is down 11.3 percent to 1627.6 from 1835.6 for the Refinance Index.
The refinance share of mortgage activity decreased to 37.4 percent of total applications from 39.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 9.7 percent from 10.3 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.57 percent from 6.24 percent, with points decreasing to 1.1 from 1.12 (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 6.14 percent from 5.78 percent, with points decreasing to 1.1 from 1.12 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 7.22 percent from 6.87 percent, with points increasing to 1.56 from 1.42 (including the origination fee) for 80 percent LTV loans.