Fixed Mortgage Interest Rates Reach New Record Lows
September 25, 2002
Mortgage Loan Applications Up In Latest MBA Weekly Survey
WASHINGTON, D.C.-- The Market Composite Index of mortgage loan applications -- a measure of mortgage loan applications for purchases and refinancings -- for the week ending September 20 increased 4.8 percent to its second-highest-ever level of 1183.8 on a seasonally-adjusted basis from 1130.1, according to the Weekly Mortgage Applications Survey of the Mortgage Bankers Association of America (MBA), which was released today. The record high of 1238.2 was set the week ended September 6, 2002. Last week was the ninth consecutive week that the Market Composite Index has been above 1000. On an unadjusted basis, the Index increased 4.5 percent and was up 85.7 percent compared to the same week a year earlier.
The MBA seasonally adjusted Purchase Index increased to 359.7 from 357.4 the previous week. The seasonally adjusted Refinance Index increased to its second highest ever level of 5977.2 from 5625.0 the previous week. The record high of 6104.3 was set the week ended September 6, 2002. Last week was the ninth consecutive week that the Refinance Index has been above 4000, and the Refinance Index has been above 5000 during seven of those nine weeks. Other seasonally adjusted index activity included the Conventional Index, which increased to 1720.0 from 1644.1 the previous week. The Government Index increased to 288.9 from 272.4 the previous week.
Refinancing activity represented 74.8 percent of total applications, increasing from 73.6 percent the previous week. The highest refinance share of 78.4 percent occurred the week ended November 9, 2001. The share of ARM activity decreased to 11.3 percent from 12.5 percent the previous week.
The average contract interest rate for 30-year fixed rate mortgages decreased to a record low 5.85 percent from its previous record low of 5.90 percent the previous week, with points decreasing to 1.48 from 1.59 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The 30-year fixed rate has now been below 6.20 percent for eight consecutive weeks and below 6.50 percent for 14 consecutive weeks.
The average contract interest rate for 15-year fixed rate mortgages decreased to a record low of 5.25 percent from the previous record low of 5.34 percent the previous week, with points decreasing to 1.33 from 1.38 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The 15-year fixed rate has now been below 5.50 percent for four consecutive weeks and below 6.00 percent for 15 consecutive weeks.
The average contract interest rate for 1-year ARMs was 4.11 percent, decreasing from 4.22 percent the previous week, with points decreasing to 1.07 from 1.10 the previous week (including the origination fee) for 80 percent LTV loans.
Source: Mortgage Bankers Association
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