Mortgage Application Volume Falls 9.3 Percent
|June 25, 2008|
Mortgage application volume fell 9.3 percent during the week ended June 20, according to the Mortgage Bankers Association's weekly application survey.
The Refinance Index decreased 12.1 percent to 1212.2 from 1378.6 the previous week and the seasonally adjusted Purchase Index decreased 7.4 percent to 333.4 from 360.2 one week earlier. The Conventional Purchase Index decreased 6.0 percent while the Government Purchase Index (largely FHA) decreased 11.1 percent. The four week moving average for the seasonally adjusted Market Index is down 6.1 percent to 507.3 from 540.3. The four week moving average is down 1.4 percent to 350.8 from 355.7 for the Purchase Index, while this average is down 12.3 percent to 1427.2 from 1627.6 for the Refinance Index.
The refinance share of mortgage activity decreased to 36.3 percent of total applications from 37.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.5 from 9.7 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.39 percent from 6.57 percent, with points increasing to 1.12 from 1.10 (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 5.95 percent from 6.14 percent, with points increasing to 1.16 from 1.10 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs decreased to 7.09 percent from 7.22 percent, with points increasing to 1.59 from 1.56 (including the origination fee) for 80 percent LTV loans.