Mortgage Applications Increase to Very Strong Pace In Latest MBA Survey

November 20, 2002

Fixed Mortgage Rates Increase

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 November 15 increased 21 percent to 1200.2 on a seasonally-adjusted basis from 922.3 the previous week, according to the Weekly Mortgage Applications Survey of the Mortgage Bankers Association of America (MBA), which was released today. On an unadjusted basis, the Index increased 20.3 percent and was up 22 percent compared to the same week a year earlier.

The MBA seasonally adjusted Purchase Index increased to 345.0 from 333.3 the previous week. The seasonally adjusted Refinance Index increased to 6174.1 from 4825.6 the previous week. Last week marked the seventeenth consecutive week that the Refinance Index has been above 4000, and the Refinance Index was above 5000 for twelve and above 6000 for five of those seventeen weeks. Other seasonally adjusted index activity included the Conventional Index, which increased to 1735.1 from 1428.0 the previous week. The Government Index increased to 307.4 from 265.4 the previous week.

Refinancing activity represented 77.6 percent of total applications, increasing from 73.0 percent the previous week. The share of ARM activity decreased to 11.9 percent from 13.3 percent the previous week.

The average contract interest rate for 30-year fixed rate mortgages increased to 5.94 percent from 5.74 percent the previous week, with points decreasing to 1.44 from 1.52 the previous week (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 5.39 percent from 5.17 percent the previous week, with points decreasing to 1.30 from 1.42 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 1-year ARMs was 3.92 percent, increasing from 3.87 percent the previous week, with points decreasing to 0.97 from 1.12 the previous week (including the origination fee) for 80 percent LTV loans.

Source: Mortgage Bankers Association of America


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